Appendix D Learning objective 4 ED-20 Computing key ratios The financial statements of Victory's Natural Foods indlude the following items: e. 78 days Current Year Preceding Year Balance Sheet: Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold S 20,000 18,000 50,000 70,000 12,000 170,000 129,000 24,000 26,000 78,000 66,000 10,000 204,000 92,000 478,000 318,000 Compute the following ratios for the current year: a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g Gross profit percentage (assume all sales are on credit)