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: 2 Cash 3Short-term investments 4 Netreceivables 5 Inventory 6 Prepaid expenses 7Total current assets Current year Preceding year 16,500 10,750 49,000 81,000 21,500 178,750211,360 125,00086000 23,500 24,000 77360 78500 8,000 Total current liabilities 10 Income statement: 11 Net credit sales 12 Cost of goods sold 13 427050 319,000