Profitability Ratios

Profitability Ratios Bryce Company manufactures pet supplies. However, Bryce's electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company's year-end accounting records (which included several profitability ratios) was possible. As a result, Bryce's controller, a bright young CMA named Jeanette, must compute various lost financial account balances using the recovered information listed below. Long-term liabilities Ending inventory is the same as beginning inventory. Gross margin Net sales Accounts receivable turnover Ending accounts receivable is the same as beginning accounts receivable. 60 Total liabilities Current ratio Cash Quick ratio Inventory turnover in days Required: Assume 365 days per year. 4 $580,000 3.5 3.65 1. 2. 3. 4. 5. Calculate current liabilities. Calculate current assets. Calculate average accounts receivable. Round your answer to the nearest whole dollar, if required. Calculate marketable securities. Round your answer to the nearest whole dollar, if required. Calculate average inventory.