The following selected information is taken from the financial statements of a company for its most recent year of operations: Beginning balances Inventory Accounts Receivable Ending Balances: Inventory Accounts Receivable Cash Marketable securities (short-term) Prepaid Expenses Accounts Payable Taxes Payable Wages Payable 7 Short-term Loans Payable $ 200,000 300,000 $ 250,000 400,000 100,000 200,000 50,000 175,000 85,000 90,000 50,000 9 During the year, Arnn had: $ 2,450,000 1,300,000 0 Net Sales 2 COGS 23 Example ratio calculation: 24 1. Compute the Times-interest-Earned ratio. 25 Interest Expense 26 Income Before Taxes 27 28 Calculation label: 29 Calculation: 30 Calculation label: 31 Calculation: 32 Answer label: 33 Answer $ 1,500.00 $ 400,000.00 income Before Taxes interest Expense $ 401,500.00 interest Expense $ 1,500.00 Income Before Taxes interest Expense)/Interest Expense 267.67 34 35 Required: 36 37 Note: Round all intermediary calculations and final answers to two decimal places and format as either a number or dollar amount (whichever is appropriate). 38 To receive full points, you must show your work and label the amounts used in your calculations. 39 Use an apostrophe' at the beginning of a calculation label to keep it from showing a NAME? error. This shows the text you have written (see my calculation label in the example above). 40 1. Compute the Current ratio. Calculation label: Calculation: Calculation label: Calculation: Answer label: Answer: = = 2. Compute the Quick or Acid-Test Ratio: Calculation label: Calculation: Calculation label: Calculation: Answer label: Answer: = " = 3. Compute the Accounts Receivable Turnover: Calculation label: Calculation: = Calculation label: Calculation: Answer label: Answer: = = 4. Compute the Accounts Receivable Turnover in Days: Calculation label: Calculation: Calculation label: Calculation: Answer label: Answer: = = 5. Compute the Inventory Turnover: Calculation label: Calculation: Calculation label: Calculation: Answer label: Answer: II 6. Compute Inventory Turnover in Days: Calculation label: Calculation: Calculation label: Calculation: Answer label