8) Explain how financial statements are used to analyze businesses. The financial statements of Phil's Burgers include the following items: Compute the following ratios for the current year: 2018 2017 Balance Sheet: Cash $ 16,000 $ 26,000 Short-term Investments 19,000 28,000 Net Accounts Receivable 60,000 92,000 Merchandise Inventory 78,000 74,000 Prepaid Expenses 17.000 Total Current Assets 190,000 226,000 Total Current Liabilities 136,000 82,000 Income Statement: Net Credit Sales $ 476,000 Cost of Goods Sold 312,000 Ratio Formula / Calculation Answer 5.000 a. Current ratio b. Cash ratio C. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables 8. Gross profit percentage