Worksheet. Modify the RATIOA4 worksheet to have it compute two additional activity ratios. number of days' sales in receivables and number of days' sales in merchandise inventory. Use the 2012 and 2013 data and assume a 365-day year. Write out the formulas for your ratios in the spaces provided. Days' sales in receivables (average collection period) Days' sales in inventory (average sales period) Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as RATIOAT. Chart. Using the RATIOA4 file, prepare a column chart that compares the acid test and current ratios for Global Technology for 2012 and 2013. Complete the Chart Tickler Data Table and use It as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as RATIOA4. Print the chart.RATIOA Ratio Analysis Data Section Global Technology Comparative Income Statement For Years Ended December 31, 2013 and 2012 2013 2012 Net sales $3,753,000 $3,516,075 Cost of merchandise sold 3,102,000 2,820,000 Gross profit $651,000 $696,075 Selling expenses $132,000 $123,000 General expenses 84.750 81,660 Total operating expenses $216,750 $204.660 Operating income $434,250 $491,415 Other expenses (interest) 36,000 36.000 Income before income tax $398,250 $455,415 Income tax 135,300 164.400 Net income $262,950 $291,015Global Technology Comparative Retained Earnings Statement For Years Ended December 31, 2013 and 2012 2013 2012 Retained earnings, January 1 $1,628,610 $1,420,095 Net income for year 262,950 291.015 Total $1,891,560 $1,711,110 Common stock dividends 102,000 82,500 Retained earnings, December 31 $1,789,560 $1,628,610Global Technology Comparative Balance Sheet For Years Ended December 31, 2013 and 2012 Assets 2013 2012 Cash $41.700 $34,830 Accounts receivable 206,400 232,500 Merchandise inventory 814,500 825,480 Prepaid expenses 4.500 22,500 Plant assets (net) 2,025,000 1,800,000 Total assets $3,092, 100 $2,915,310 Liabilities & Stockholders' Equity Accounts payable $342,240 $326.400 Bonds payable, 10% due 2010 360,000 360,000 Total liabilities $702,240 $686,400 Common stock $600,300 $600,300 Retained earnings 1,789,560 1,628,610 Total stockholders' equity $2,389,860 $2,228,910 Total liabilities & stockholders' equity $3,092, 100 $2,915,310GT 2013 GT 2012 Liquidity ratios: Acid-test (quick) ratio 0.72 0.82 Current ratio 3.12 3.42 Activity ratios: Accounts receivable turnover 17.10 13.24 Inventory turnover 3.78 3.86 Profitability ratios Gross profit ratio 17.35% 19.80% Net income to sales 7.01% 8.28% Rate earned on total assets 8.75% 10.64% Rate earned on common stock equity 11.00% 13.06% Coverage ratios: Debt to total assets 0.23 0.24 Times interest earned 12.06 13.65 Days' sales in receivables (average collection period) Days' sales in inventory (average sales period)
