The following selected accounts were taken from the financial records of Santa Barbara Distributors at December 31, 2013. All accounts have normal balances.
Cash..............................................................$ 22,500
Accounts receivable..............................................46,700
Note receivable, due 2014........................................8,500
Merchandise inventory..........................................34,700
Prepaid insurance..................................................2,250
Supplies.............................................................1,310
Equipment.........................................................42,500
Accumulated depreciation, equipment........................22,500
Note payable to bank, due 2014................................25,000
Accounts payable................................................21,134
Interest payable......................................................250
Sales..............................................................525,000
Sales discounts....................................................2,200
Cost of goods sold.............................................392,100
Merchandise inventory at December 31, 2012 was $57,558. Based on the account balances above, calculate the following:
a. The gross profit percentage
b. Working capital
c. The current ratio
d. The inventory turnover