Willingham Company has the following comparative balance sheet data.
|
Willingham Company Balance Sheets December 31
|
|
|
2014
|
2013
|
|
Cash
|
$ 10,000
|
$ 30,000
|
|
Receivables (net)
|
70,000
|
50,000
|
|
Inventory
|
60,000
|
50,000
|
|
Plant assets (net)
|
205,000
|
190,000
|
|
|
$345,000
|
$320,000
|
|
Accounts payable
|
$ 50,000
|
$ 60,000
|
|
Mortgage payable (15%)
|
100,000
|
100,000
|
|
Common stock, $10 par
|
140,000
|
120,000
|
|
Retained earnings
|
55,000
|
40,000
|
|
|
$345,000
|
$320,000
|
Additional information for 2014:
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $187,000.
Instructions
Compute the following ratios at December 31, 2014.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover.