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.)
1. Current ratio
2. Acid test ratio
3. Asset turnover ratio
4. Gross profit rate
Net Sales | $240,000 |
Current Assets | 51,300 |
Gross Profit | 96,000 |
Current Liabilities | 19,000 |
Total Assets | 480,000 |
Merchandise Inventory | 14,000 |
Prepaid Expenses | 8,800 |
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.
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a Current assets Current liabilities Current ratio 51300 19000 ...View the full answer
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Related Book For 
College Accounting A Practical Approach
ISBN: 9780134729312
14th Edition
Authors: Jeffrey Slater, Mike Deschamps
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