Georgette Company has the following comparative balance sheet data:

\section*{Additional information for 1996:}
1. Net income was \(\$ 25,000\)
2. Sales on account were \(\$ 420,000\). Sales returns and allowances amounted to \(\$ 20,000\).
3. Cost of goods sold was \(\$ 198,000\).
4. Net cash provided by operating activities was \(\$ 44,000\).
\section*{Instructions}
Compute the following ratios at December 31, 1996:

(a) Current.

(e) Cash return on sales.

(b) Acid-test.

(f) Cash debt coverage.

(c) Receivables turnover.
(g) Current cash debt coverage.

(d) Inventory turnover.

Transcribed Image Text:

Cash Receivables (net) Inventories Plant assets (net) Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings December 31, 1996 $ 20,000 65,000 60,000 200,000 $345,000 $ 50,000 100,000 140,000 December 31, 1995 $ 30,000 60,000 50,000 180,000 $320,000 $ 60,000 100,000 120,000 55,000 40,000 $345,000 $320,000