The following income statement and balance sheet for Virtual Gaming Systems are provided. Required: Assuming that all
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The following income statement and balance sheet for Virtual Gaming Systems are provided.
Required:
Assuming that all sales were on account, calculate the following risk ratios for 2012.
Receivables turnover ratio.
Average collection period.
Inventory turnover ratio.
Average days in inventory.
Current ratio.
Acid-test ratio.
Debt to equity ratio.
Times interest earned ratio.
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
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Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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