From the data given calculate the following. (Round to the nearest hundredth or hundredth of a percent

Question:

From the data given calculate the following. (Round to the nearest hundredth or hundredth of a percent as needed.)

a. Current ratio

b. Acid test ratio

c. Asset turnover ratio

d. Gross profit rate

Net Sales ............................................$270,000

Current Assets........................................ 52,000

Gross Profit......................................... 108,000

Current Liabilities.................................... 17,000

Total Assets.......................................... 170,000

Merchandise Inventory ................................5,000

Prepaid Expenses..................................... 12,000

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: