Hi Wendy,

Are you able to help me answer this question.

E13-18 (Ratio Computations and Analysis) Prior Company's condensed financial statemnts provide the following informati PRIOR COMPANY BALANCE SHEET Dec. 31, 2017 Cash $ 52,000 Accounts receivable (net) 198,000 Short-term investments 80,000 Inventory 440,000 Prepaid expenses 3,000 Total Current assets $ 773,000 Property, plant, and equipment (net) 857,000 Total assets $ 1,630,000 Current liabilities 240,000 Bonds payable 400,000 Common stockholders' equity 990,000 Total liabilities and stockholders' equity $ 1,630,000 INCOME STATEMENT FOR THE YEAR ENDED 2017 Sales Revenue Cost of goods sold Gross Profit Selling and administrative expenses Interest expense Net income $ $1,640,000 (800,000) 840,000 (440,000) (40,000) 360,000 Instructions: (a.) Determine the following for 2017. (1) Current ratio at December 31 (2) Acid-test ratio at December 31. (3) Accounts receivable turnover. (4) Inventory turnover. (5) Return on assets. (6) Profit margin on sales. (b) Prepare a breif evaluation of the financial condition of Prior Company and of the adequacy of its profits. de the following information. Dec. 31, 2016 60,000 80,000 40,000 360,000 7,000 $ 547,000 853,000 $ 1,400,000 160,000 400,000 840,000 $ 1,400,000 $ y of its profits