The financial statements of Hernandez & Sons, Inc. include the following items:

Requirement
Compute the following ratios for the current year:
(a) Current ratio,
(b) Quick ratio,
(c) Inventory turnover,
(d) Accounts receivable turnover, and
(e) Days€™ sales in accounts receivable.

Transcribed Image Text:

Current Year Previous Year Balance Sheet Cash.. Short-Term Investments. Accounts Receivable, Net. Inventory.. $ 27,000 22,000 54,000 65,000 7,000 175,000 87,500 33,000 28,000 72,000 42,000 9,000 184,000 92,000 Total Current Assets.... Income Statement