Question: Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was $38,200.

Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was $38,200.

REQUIRED

Prepare the following financial ratios:

(a) Working capital

(b) Current ratio

(c) Quick ratio

(d) Return on owner’s equity

(e) Accounts receivable turnover and the average number of days required to collect receivables

(f) Inventory turnover and the average number of days required to sell inventory

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