The partial financial statements of a company include the following items:

Requirement
Compute the following ratios for the current year:
a. Current ratio
b. Acid- test ratio
c. Inventory turnover
d. Days€™ sales in averagereceivables

Transcribed Image Text:

1 Balance sheet item: 2Cash 3Shortorm irvestments Current year Preceding year 20,000 9,000 S 2,600 S 58,000 75,50098200 26000 8720 72500 4 Not trecevables S Inventory 6 Prepaid expenses 7 Total current assets 8 Total cutrent iablities 28900 174.000 is 175.420 116,000 94,000 10 Incomo statement: 11 Net credit sales 12 Cost of goods sold 13 423.400 292,300