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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.

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

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