1. Using Exhibit 13-8 on page 758 as a model, calculate the following ratios for 2016 and 2015: a. Current ratio b. Quick (acid test) ratio c. Inventory turnover and days inventory outstanding (DIO) d. Accounts receivable turnover e. Days sales in average receivables or days sales outstanding (DSO) f. Accounts payable turnover and days payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover g. Cash conversion cycle (in days)

Exercise 5 -Calculate Ratios The financial statements of Bay City Cheese Company include the following items: 2016 2015 2014 Balance Sheet: S 48,000 84,000 Cash Short-term investments Net receivables Invento Prepaid expenses Total current assets Accounts payable Total current liabilities 17,000 21,000 72,000 75,000 55,000 85,000 72,000 60,000 8,000 6,000 230,000 258,000 75,000 65,000 50,000 131,000 94,000 Income Statement: $484,000 $507,000 266,000 254,000 Net credit sales Cost of goods sold Requirements Using Exhibit 13-8 on page 758 as a model, calculate the following ratios for 2016 and 2015: a. Current ratio b. Quick (acid test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the 1. formula for accounts payable turnover Cash conversion cycle (in days) g