The financial statements of Voyage, Inc., include the following items: Requirement 1. Compute the following ratios for

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The financial statements of Voyage, Inc., include the following items:

The financial statements of Voyage, Inc., include the following items:

Requirement
1. Compute the following ratios for the current year:
(a) current ratio,
(b) quick ratio,
(c) cash conversion cycle,
(d) accounts receivable turnover,
(e) inventory turnover,
(f) gross profit percentage, and
(g) net income percentage.
Round all calculations to two decimal places, days to full days, and percentages to the nearest tenth of a percent. Assume all sales oncredit.

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting

ISBN: 978-0133052152

2nd edition

Authors: Robert Kemp, Jeffrey Waybright

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