The partial financial statements of a company include the following items:
Balance sheet item: Current year Prior year
Cash $ 16,500 $ 23,500
Short-term investments 10,750 24,000
Net receivables 49,000 77,360
Inventory 81,000 78,500
Prepaid Expenses 21,500 8,000
Total current assets 178,750 211,360
Total current liabilities 125,000 86,000
Income Statement:
Net credit sales $ 477,050
Cost of goods sold 319,000
Requirement:
Compute the following ratios for the current year:
1) Current ratio
2) Acid-test ratio
3) Inventory turnover
4) Days’ sales in average receivables