The financial statements include the following:

Balance sheet:

Cash 2014-48000 2013-84000

Short-term investments 2014-17000 2013-21000

Net receivables 2014-72000 2013-75000 2012-55000

inventory-2014-85000 2013-72000 2012-60000

prepaid expenses 2014-8000 2013-6000

total current assets 2014-230000 2013-258000

accounts payable 2014-75000 2013-65000 2012-50000

total current liabilities 2014-131000 2013-94000

Income statement:

net credit sales 2014-484000 2013-507000

cost of goods sold 2014-266000 2013-254000

REQUIREMENTS: Compute the ratios for 2014 and 2013.

a. current ratio

b. quick (acid test) ratio

c. Inventory turnover and days inventory outstanding (DIO)

d. Accounts receivable turnover

e. Days sales in average receivables or days sales outstanding (DSO)

f. Accounts payable turnover and days payable outstanding (DPO). use cost of goods sold in the formula for accounts payable turnover.

g. cash conversion cycle (in days).