E12-32B (Learning Objective 4: Computing five ratios) The financial statements of Advent News, Inc., include the following items Current Year Preceding Year Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses..... Total current assets Total current liabilities. Income statement: Sales revenue Cost of goods sold 65,000 13,000 79,000 93,000 6,000 256,000 133,000 91,000 25,000 82,000 75,000 12,000 285,000 97,000 494,000 277,000 I Requirement 1. Compute the following ratios for the current year: a. Current ratio d. Inventory resident period b. Acid-test ratio e. Payable outstanding period c. Receivable collection period f. Cash conversion cycle