Question: Compute the following ratios for the current year: a) Working Capital Total Current Assets - Total Current Liabilities b) Current Ratio Total current assets /

Total Current Assets - Total Current Liabilities b) Current Ratio Total current

Compute the following ratios for the current year: a) Working Capital Total Current Assets - Total Current Liabilities b) Current Ratio Total current assets / Total Current Liabilities Total current assets / Total Current Liabilities c) Acid-test Ratio Cash + Short Term Investment + Net Acct. Receivables / Total Current Liabilities / = d) Inventory Turnover Cost of goods sold / Average merchandise inventory e) Days sales in inventory 365 days / Inventory turnover f) Accounts Recelvable turnover ratio Net credit sales / Average net accounts receivables g) Days sales in receivables 365 days / Accounts receivable turnover ratio

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