Willingham Company Ltd. has the following comparative statements of financial position data.

WILLINGHAM COMPANY LTD.

Statements of Financial Position

December 31

Additional information for 2017:
1. Net income was £28,000.
2. Sales on account were £418,000. Sales returns and allowances were £22,000.
3. Cost of goods sold was £190,000.
Instructions
Compute the following ratios at December 31, 2017.
(a) Current ratio.
(b) Acid-test ratio.
(c) Accounts receivable turnover.
(d) Inventory turnover.

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2017 2016 Plant assets (net) Inventory Accounts receivable (net) Cash £205,000 60,000 70,000 10,000 £345,000 £190,000 50,000 50,000 30,000 £320,000 Share capital-ordinary, £10 par Retained earnings Mortgage payable (6%) Accounts payable £140,000 55,000 100,000 50,000 £345,000 £120,000 40,000 100,000 60,000 £320,000