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

Requirement
1. Compute the following ratios for the current year:
a. Current ratio
b. Acid-test ratio
c. Inventory turnover
d. Accounts receivable turnover
e. Days sales in average receivables
(Round your answers to a through d to two decimal points. Round your answer to e to the nearest whole number.)

Transcribed Image Text:

Current Year Preceding Year Balance sheet: $ 26,000 14,000 50,000 94,000 9,000 193,000 S 32,000 20,000 73,000 76,000 8,000 Short-term investments Net receivables Inventory Prepaid expenses0029.00 Total current assets 96,000 Income statement: Net credit sales Cost of goods sold $490,000 274,000