Kelleher Crafts has provided the following data:

Requirement
Compute the following ratios for the current year for Kelleher Crafts:
a. Current ratio
b. Acid-test ratio
c. Inventory turnover
d. Days' sales in average receivables (assume all sales are on credit)

Transcribed Image Text:

Current year 16,000 S 14,730 S 50,000 $ 74,000 $ 17,260 S 171,990 S 117,000 $ Preceding year 21,000 25,500 76,140 73,000 9,500 205,140 88,000 1 Balance sheet Item: Cash Short-term Investments Net recelvables %24 Inventory Prepald expenses Total current assets Total current llabllitles 9. %2$ 10 Income statement: Net credit sales 434,350 323,400 11 Cost of goods sold 12 13