Question: The following income statement and balance sheet for Virtual Gaming Systems are provided.
Required: Assuming that all sales were on account, calculate the following risk ratios for 2012.
1. Receivables turnover ratio.
2. Average collection period.
3. Inventory turnover ratio.
4. Average days in inventory.
5. Current ratio.
6. Acid-test ratio.
7. Debt to equity ratio.
8. Times interest earned ratio.