Willingham Company has the following comparative statements of financial position data.

Willingham Company
Statements of Financial Position
December 31

Additional information for 2014: 
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $187,000.

Instructions
Compute the following ratios at December 31, 2014.
(a) Current.
(b) Acid-test. 

(c) Accounts receivable turnover. 

(d) Inventory turnover.

Transcribed Image Text:

2014 2013 Plant assets (net) Inventory Accounts receivable (net) Cash $205,000 60,000 70,000 10,000 $190,000 50,000 50,000 30,000 $345,000 $320,000 Share capital-ordinary, $10 par Retained earnings Mortgage payable (6%) Accounts payable $140,000 55,000 100,000 50,000 $120,000 40,000 100,000 60,000 $345,000 $320,000