The financial statements of a company include the following items:

Requirement
Compute the following ratios for the current year:
a. Current ratio
b. Acid-test ratio
c. Inventory turnover
d. Days' sales in average receivables

Transcribed Image Text:

Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Total current liabilities Current vear $ 14,000 $ 7,020 54,000 $ 76,000 $ 20,800 $171,820 $121,000 Preceding vear 24,000 27,500 65,560 74,000 $ 7,700 $198,760 85,000 Income statement: Net credit sales Cost of goods sold $445,300 $315,000