Question

In: Accounting

Current Year Preceding Year Balance Sheet: Cash $24,000 $25,000 Short-term Investments 17,000 28,000 Net Accounts Receivables...

	Current Year	Preceding Year
Balance Sheet:
Cash	$24,000	$25,000
Short-term Investments	17,000	28,000
Net Accounts Receivables	42,000	86,000
Merchandise Inventory	72,000	60,000
Prepaid Expenses	16,000	9,000
Total Current Assets	171,000	208,000
Total Current Liabilities	130,000	87,000
Income Statement:
Net Credit Sales	$470,000
Cost of Goods Sold	317,000

a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.)

Current ratio

=

b. Compute the cash ratio for the current year. (Round your answer to two decimal places, X.XX.)

Cash ratio

=

c. Compute the acid-test ratio for the current year. (Round your answer to two decimal places, X.XX.)

Acid-test ratio

=

d. Compute the inventory turnover for the current year. (Round your answer to two decimal places, X.XX.)

Inventory turnover

=

times

e. Compute the days' sales in inventory for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to the nearest whole day.)

Days' sales in inventory

=

days

f. Compute the days' sales in receivables for the current year. (Round intermediary calculations to two decimal places, X.XX and round your final answer to nearest whole day.)

Days' sales in receivables

=

days

g. Compute the gross profit percentage for the current year. (Round your answer to one tenth of a percent, X.X%.)

Gross profit percentage

=

%

Expert Solution

The answer has been presneted in the supporting sheet. For detaield answer refer to the supporting sheet.

ekkarill92 answered 11 hours ago

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