The condensed statements of Jersey Corp. follow: Jersey Corp. Balance Sheet (In millions of Canadian dollars) December 31, 2019 2019 2018 2017 Assets Cash $100 $25 $59 Accounts receivable 26 20 30 Inventory 100 80 90 Total current assets 226 125 179 Long-term investments - 7 27 Plant and equipment 510 530 392 Total assets $736 $662 $598 Liabilities and Owner's Equity Current liabilities $110 $92 $77 Common shares 196 196 160 Retained earnings 430 374 361 Total liabilities and shareholder's equity $736 $662 $598 Jersey Corp. Income Statement (In millions of Canadian dollars) For the year ended December 31, 2019 2019 2018 2017 Sales(net) $980 $824 $710 Cost of goods sold 545 $433 338 Gross profit from sales 435 $391 372 Selling expense 131 $104 109 Administrative expense 98 $105 95 Total expenses 229 $208 204 Income before taxes 206 $183 168 Income taxes 72.1 $64 59 Net income $133.9 $119 $109 Required: (round to one decimal point) 

(a) Calculate the current ratio, accounts receivable turnover, merchandise turnover and debt ratio for 2018. Current ratio Accounts rec. turnover Merchandise turnover Debt ratio 

(b) Are the above ratios favorable or unfavorable assuming the following industry standards?

Answer rating: 100% (QA)

a Calculations for 2018 1 Current Ratio Current Ratio Current Assets Current Liabilities Current Ass... View the full answer