Frizell Company has the following comparative balance sheet data.

Additional information for 2017:

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 $198,000.

Instructions

Compute the following ratios at December 31, 2017.

(a) Current ratio.

(b) Acid-test ratio.

(c) Accounts receivable turnover.

(d) Inventory turnover.

FRIZELL COMPANY Balance Sheets December 31 2017 2016 $ 15,000 $ 30,000 60,000 50,000 Cash Accounts receivable (net) Inventory Plant assets (net) 70,000 60,000 200,000 180,000 $345,000 $320,000 $ 50,000 100,000 140,000 55,000 $ 60,000 Accounts payable Mortgage payable (6%) Common stock, $10 par Retained earnings 100,000 120,000 40,000 $345,000 $320,000