Question Content Area The following financial statements are for Soft Cloud Co.: Soft Cloud Co.

Income Statement For the Year Ended December 31,

Year 1 Description Amount Net sales $383,000.

Cost of goods sold 121,700.

Gross margin $261,300

Operating expenses

Selling expenses $41,500

Administrative expenses 56,500

Interest expense 12,000

Total expenses 110,000

Net income $151,300

Soft Cloud Co.

Balance Sheet At December 31, Year 1

description Amount

Assets Current assets:

Cash $53,000

Accounts receivable 64,300

Marketable securities 10,500

Inventory 93,250

Total current assets $221,050

Property, plant, and equipment:

Store equipment $325,000

Accumulated depreciation 162,100 $162,900

Office equipment $149,750

Accumulated depreciation 72,750 77,000

Total property, plant, and equipment 239,900

Total assets $460,950

Liabilities Current liabilities:

Accounts payable $97,200

Salaries payable 28,700

Total current liabilities $125,900

Long-term liabilities:

Note payable 154,000

Total liabilities $279,900

Stockholders' Equity Total stockholders' equity 181,050

Total liabilities and equity $460,950

There were 30,000 shares of common stock outstanding throughout Year 1. Dividends on common stock amounted to $21,000, and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of Year 1. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400, respectively. Total assets at the beginning of the year were $430,500. Note the following: Assume that there are 365 days in a year.

For ratios, round to two decimal places. For Turnover in days computations, round to one decimal.

A. Compute the current ratio. fill in the blank 1 of 1 1.76

B. Compute the quick ratio. fill in the blank 1 of 1 1.02

C. Compute the accounts receivable turnover ratio and accounts receivable turnover in days .

Description Answer Accounts receivable turnover ratio fill in the blank 3 times Turnover in days fill in the blank 4 days D. Compute the inventory turnover ratio and inventory turnover in days. Line Item Description Answer Inventory turnover ratio fill in the blank 5 times Turnover in days fill in the blank 6 days