Question: Compute the following for Year 2: a. Return on total assets. b. Current ratio. c. Acid-test ratio. (Cash and cash equivalents/Current Liabilities) d. Accounts receivable

Compute the following for Year 2:

a. Return on total assets.

b. Current ratio.

c. Acid-test ratio. (Cash and cash equivalents/Current Liabilities)

d. Accounts receivable turnover. (sales on account/avg A/R)

e. Average collection period. (365/A/R turnover)

f. Inventory turnover. (COGS/avg Inventory)

g. Average sale period. (365/Inventory turnover)

h. Debt-to-equity ratio.

Compute the following for Year 2: a. Return on total assets. b.

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