Vancouver International Corporation
	Balance Sheet
	December 31, 2020 and 2019
	2020	2019
Current assets
Cash	$18,000	$6,000
Short-term investments	18,000	7,000
Accounts receivable, net	29,000	23,000
Inventory	37,000	35,000
Prepaid expenses	4,000	3,000
Total current assets	$106,000	$74,000
Property, plant, and equipment, net	33,300	35,000
Other assets	27,000	22,500
Total assets	$166,300	$131,500
Current liabilities
Short-term borrowings	$32,400	$12,900
Accounts payable	34,000	21,500
Total current liabilities	$66,400	$34,400
Non-current debt	37,500	33,000
Total liabilities	$103,900	$67,400
Shareholders' equity
Common shares	$20,000	$20,000
Retained earnings	42,400	44,100
Total shareholders' equity	$62,400	$64,100
Total liabilities and shareholders' equity	$166,300	$131,500
Additional information for year 2019:
Net income from operations	$23,600
Interest expense	$2,650
Depreciation expense	$1,700
Cost of goods sold	$146,000
Net credit sales	$385,000
Industry benchmarks:
current ratio 1.50
acid test 1.00
debt ratio .62
inventory turnover 4.10
receivable turnover 30.1
Required:
Calculate the following 2019 ratios for the company:
Current ratio
Acid test
Inventory turnover
Accounts receivable turnover
Debt ratio
Times interest earned
Based upon your calculations comment on the company's ability to:
1) pay their current liabilities
2) meet their overall liabilities
3) to sell inventory and collect accounts receivables