Q9: Exam Company reported the following financial statement data: Exam Company Balance Sheet Cash Accounts Receivable, Net Merchandise Inventory Total Current Assets Long Term Investments Plant Assets, Net TOTAL ASSETS Accounts Payable Salaries Payable Total Current Liabilities Long Term Liabilities Total Liabilities Paid in Capital Retained Earnings. Total Equity TOTAL LIABILITIES AND EQUITY Sales Revenue Cost of Goods Sold Gross Profit Selling expenses Admin expenses Total Operating Expenses Net Income Current Ratio: As for December 31 Current Year = $53,570 83,280 122,260 $66,300 10,870 327,590 93,150 Exam Company Income Statement For Year Ending December 31 $281,000 182,700 98,300 40,100 53,230 93,330 $4,970 259,110 80,000 207,500 $546,610 77,170 48,700 125,870 420,740 $546,610 Last Year $56,130 81,500 104,900 $55,600 10,800 a. Calculate the Current Ratio for Current Year (show formula as well) 306,780 61,100 242,530 72,150 229,100 $543,780 66,400 109,500 175,900 367,880 $543,780

Q9: Exam Company reported the following financial statement data: Exam Company Income Statement a. Calculate the Current Ratio for Current Year (show formula as well) Current Ratio = Selling expenses Admin expenses Total Operating Expenses Net Income 40,10053,23093,330$4,970 a. Calculate the Current Ratio for Current Year (show formula as well) Current Ratio = b. Calculate the Current Year AR Turnover and Days Sales Uncollected Ratios (show formulas) AR Turnover = Days Sales Uncollected = c. Calculate the Current Year Inventory Turnover and Days Sales in Inventory Ratio (show formulas) Inventory Turnover = Days Sales in Inventory = d. Explain what these ratios tell you specifically about this company