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Gross Company has the following comparative balance sheet data. GROSS COMPANY Balance Sheets December 31 2013 Cash $ 20,000 Receivables (net) 70,000 Inventory 60,000 Plant assets (net) 195,000 $345.000 Accounts payable $50,000 Mortgage payable (10%) 100,000 Common stock. S10 par 140,000 Retained earnings 55,000 $345.000 Additional information for 2013: 1. Net income was $25,000 2. Sales on account were $429,000. Sales returns and allowances were $20,000. 3. Cost of goods sold was $209,000 Instructions 1. Compute the following ratios at December 31, 2013. (2.0 marks) (a) Current (b) Acid-test (c) Receivables turnover. (d) Inventory turnover. 2. Explain the use of liquidity ratios in financial analysis. (1.0 mark) 2012 $ 30,000 60,000 50,000 180,000 $320,000 $60,000 100,000 120,000 40,000 $320,000