4B

E 15-4B (LO4) FINANCIAL RATIOS Based on the financial statements, shown on pages 603-604, Current natio:3.68 to for McDonald Carpeting Co. lincome statement, statement of owner's equity, and Retuen on owner's ecuity: 42.65 balance sheet), prepare the following financial ratios. All sales are credit sales. The - imentory turnover: 3.42 balance of Accounts Receivable on January 1, 20, was $6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owner's equity 5. Accounts receivable turnover and the average number of days required to collect receivables 6. Inventory turnover and the average number of days required to sell inventory (a)