The financial statements of National News Inc. include the following items:

Requirement
Compute the following ratios for the current year:
a. Current ratio
b. Quick (acid-test) ratio
c. Inventory turnover
d. Accounts receivable turnover
e. Days' sales in receivables

Transcribed Image Text:

Current Year Preceding Year Balance Sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Total current liabilities Income Statement: Net credit sales Cost of goods sold $ 17,000 11,000 64,000 77,000 16,000 $185,000 $111,000 $ 22,000 26,000 73,000 71,000 8,000 $200,000 $ 91,000 $654,000 327,000