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The financial statements of Advent ?News, Inc., include the following? items: Compute the following ratios for 2014 and 2013?: a. Current ratio b. Quick? (acid

The financial statements of Advent ?News, Inc., include the following? items:

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Compute the following 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) ?

(When computing? days, round your answer to the nearest whole? number.)

Balance sheet Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities Income statement: Net credit sales Cost of goods sold 2013 2014 77,000 103,000 15,000 25,000 81,000 84,000 88,000 75,000 6,000 4,000 291,000 267,000 60,000 30,000 91,000 135,000 s 499,000 s 505,000 284,000 278,000 2012 45,000 63,000 35,000

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