Question
The Financial statements of Victor's Natural Foods include the following items: Current Year Preceding Year Balance Sheet: Cash $15,000 $20,000 Short-term Investments 11,000 $27,000 Net
The Financial statements of Victor's Natural Foods include the following items: Current Year Preceding Year Balance Sheet: Cash $15,000 $20,000 Short-term Investments 11,000 $27,000 Net Accounts Receivables 54,000 73,000 Merchandise Inventory 77,000 69,000 Prepaid Expenses 15,000 90,000 Total Current Assets 172,000 198,000 Total Current Liabilities 133,000 93,000 Income Statement: Net Credit Sales $462,000 Cost of Goods Sold 315,000 Compute the following ratios for the current year: a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days
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