Ques 6) Please provide the answer in word or excel:

6) Following is a comparative balance sheet for Wong Corporation:

Wong Corporation

Comparative Balance Sheet

December 31, 2017 and 2016

Assets 2017 2016

Current assets

Cash $12,000 $8,000

Short-term investments 7,000 9,000

Accounts receivable, net 33,000 20,000

Merchandise inventory 47,000 42,500

Prepaid expenses 2,000 3,000

Total current assets 101,000 82,500

Property, plant, and equipment, net 73,400 50,000

Intangible assets 29,000 27,500

Total assets $203,400 $160,000

Liabilities

Current liabilities

Short-term note payable $60,000 $65,900

Accounts payable 20,000 22,500

Total current liabilities 80,000 88,400

Long-term debt 37,500 20,000

Total liabilities 117,500 108,400

Shareholders' equity

Common shares 40,000 40,000

Retained earnings 45,900 11,600

Total shareholders' equity 85,900 51,600

Total liabilities & shareholders'

equity $203,400 $160,000

Note: Net sales (all on credit) for the year ended December 31, 2017, were $200,000, and the cost of goods sold was $120,000.

The number of common shares outstanding has been 4,000 since the company began operations.

Calculate the following ratios for the year ended December 31, 2017. Identify any areas of concern, if any:

a) current ratio

b) acid-test ratio

c) inventory turnover

d) accounts receivable turnover

e) debt ratio