Problem 4) (8 marks)

Following are the selected balances taken from the books of Annie Ltd. at the end of 2004.

Cost of goods sold	270,000
Accounts payable	100,000
Merchandise inventory (1.1.04)	60,000
Bills payable	250,000
Accounts receivable (1.1.04)	190,000
Marketable securities	71,000
Notes payable	15,000
Cash	54,000
Accounts receivable (31.12.04)	175,000
Credit sales (Net)	912,500
Cash Sale	37500
Merchandise inventory (31.12.04)	75,000

REQUIRED

On the basis of above information, compute:

Acid test ratio
Inventory turnover
Average days to accounts receivable Gross profit Cash Ratio