The financial statements of Evans News, Inc., include the following items: (Click the icon to view the financial statements.) * X - Requirements Read the requirements a. Current ratio. Select the formula and then enter the amounts to calculate the current ratio. (Round the ratios to two decimal places, X.XX.) 1. Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the nearest whole number. Current assets / Current liabilities = Current ratio a. Current ratio 2018 $ 233,000 / $ 133,000 1.75 b. Quick (acid-test) ratio 2017 $ 232,000 1 $ 96,000 = 2.42 c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover b. Quick (acid-test) ratio. e. Days' sales in average receivables or days' sales outstanding (DSO) Select the formula and then enter the amounts to calculate the acid-test ratio. (Abbreviations used: Avg = average, ST = short-term, and Cash* = cash and cash equivalents. Round the ratios to two decimal places, X.XX.) f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover. Cash + ST investments + Net receivables / Current liabilities = Acid-test ratio g. Cash conversion cycle in days) 2018 ( $ 39,000 + $ 15,000 + $ 73,000 )/ $ 133,000 0.95 (When calculating days, round your answer to the nearest whole number.) 2. Evaluate the company's liquidity and current debt-paying ability for 2018. Has 2017 ( $ 45,000 + $ 29,000 + $ 76,000 / $ 96,000 1.56 it improved or deteriorated from 2017? c. Inventory turnover and days' inventory outstanding (DIO). 3. As a manager of this company, what would you try to improve next year? Begin by selecting the formula and then enter the amounts to calculate inventory turnover. (Round the ratios to two decimal places, X.XX.) Print Done Cost of goods sold / Average inventory = Inventory turnover 2018 $ 271,000 / $ 85,000 = 3.19 2017 $ 281,000 1 $ 67,500 4.16 Now, select the formula and then enter the amounts to calculate days' inventory outstanding (DIO). (Enter formula ratios to two decimal places, X.XX, and use a 365-day year. Round your final answers to one decimal place, XX.) Days in year / Inventory turnover = Days' inventory outstanding (DIO) 2018 2017 Choose from any list or enter any number in the input fields and then click Check Answer The financial statements of Evans News, Inc., include the following items: (Click the icon to view the financial statements.) * X - Requirements Read the requirements a. Current ratio. Select the formula and then enter the amounts to calculate the current ratio. (Round the ratios to two decimal places, X.XX.) 1. Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the nearest whole number. Current assets / Current liabilities = Current ratio a. Current ratio 2018 $ 233,000 / $ 133,000 1.75 b. Quick (acid-test) ratio 2017 $ 232,000 1 $ 96,000 = 2.42 c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover b. Quick (acid-test) ratio. e. Days' sales in average receivables or days' sales outstanding (DSO) Select the formula and then enter the amounts to calculate the acid-test ratio. (Abbreviations used: Avg = average, ST = short-term, and Cash* = cash and cash equivalents. Round the ratios to two decimal places, X.XX.) f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover. Cash + ST investments + Net receivables / Current liabilities = Acid-test ratio g. Cash conversion cycle in days) 2018 ( $ 39,000 + $ 15,000 + $ 73,000 )/ $ 133,000 0.95 (When calculating days, round your answer to the nearest whole number.) 2. Evaluate the company's liquidity and current debt-paying ability for 2018. Has 2017 ( $ 45,000 + $ 29,000 + $ 76,000 / $ 96,000 1.56 it improved or deteriorated from 2017? c. Inventory turnover and days' inventory outstanding (DIO). 3. As a manager of this company, what would you try to improve next year? Begin by selecting the formula and then enter the amounts to calculate inventory turnover. (Round the ratios to two decimal places, X.XX.) Print Done Cost of goods sold / Average inventory = Inventory turnover 2018 $ 271,000 / $ 85,000 = 3.19 2017 $ 281,000 1 $ 67,500 4.16 Now, select the formula and then enter the amounts to calculate days' inventory outstanding (DIO). (Enter formula ratios to two decimal places, X.XX, and use a 365-day year. Round your final answers to one decimal place, XX.) Days in year / Inventory turnover = Days' inventory outstanding (DIO) 2018 2017 Choose from any list or enter any number in the input fields and then click Check