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Use the following financial data to compute the requested ratios:

Use the following financial data to compute the requested ratios:
Income statement data
Sales (all on credit) $650,000
Cost of goods sold 425,000
Income before taxes 78,000
Net income 54,600

Balance sheet items Ending
Balances Beginning
Balances
Cash $ 19,500 $ 15,000
Accounts receivable (net) 65,000 60,000
Inventory 71,500 64,500
Plant and equipment (net) 195,000 183,900
Total assets $ 351,000 $ 323,400

Current liabilities $ 62,400 $ 52,700
Long-term notes payable 97,500 100,000
Calculate the following ratios for the current year. Showanswers to a, b, and e to 2 decimal places; show answers to c, d, and f to 1 decimal place:
a. current ratio ___________
b. acid-test ratio ___________
c. accounts receivable turnover ___________
d. days’ sales uncollected ___________
e. inventory turnover ___________
f. days’ sales in inventory ___________

2 points will be given for each correct answer. The maximum number of points that can be earned are 10.Show your computations.

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Accounting-8190668.xls

Sales
COGS
Income before taxes
Net Income Cash
AR
Inventory
P&E (net)
Total Assets
Current Liabilities
Long term notes payable 650000
425000
78000
54600
Ending
Beginning
19500
15000
65000...

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