The following data is given: December 31, 2015 2014 Cash $66,000 $49,000 Accounts receivable (net) 90,500 60,500 Inventories 90,500 109,000 Plant assets (net) 384,500 323,000 Accounts payable 55,500 38,500 Salaries and wages payable 9,500 5,000 Bonds payable 70,000 70,500 8% Preferred stock, $40 par 100,000 100,000 Common stock, $10 par 120,000 90,000 Paid-in capital in excess of par 85,000 70,000 Retained earnings 191,500 167,500 Net credit sales 940,000 Cost of goods sold 705,000 Net income 81,000 Compute the following ratios: (Round answers to 2 decimal places e.g. 15.25.)

(a) Acid-test ratio at 12/31/15 : 1

(b) Accounts receivable turnover in 2015 times

(c) Inventory turnover in 2015 times

(d) Profit margin on sales in 2015 %

Answer rating: 100% (QA)

a Acid test Ratio it measures efficiency of liquid assets to pay back current liabilities liqu... View the full answer