ED-20
Computing key ratios
ED-20
The financial statements of Victor’s
Natural Foods include the following items
Current Year Balance Sheet:
Preceding
Year
Cash $ 15,000 $ 20,000
Short-term Investments 11,000 27,000
Net Accounts Receivables 54,000 73,000
Merchandise Inventory 77,000 69,000
Prepaid Expenses 15,000 9,000
Total Current Assets 172,000 198,000
Total Current Liabilities 133,000 93,000
Income Statement:
Net Credit Sales $ 462,000
Cost of Goods Sold 315,000
Compute the following ratios for the current year:
a. Current ratio e. Days’ sales in inventory
b. Cash ratio f. Days’ sales in receivables
c. Acid-test ratio g. Gross profit percentage
d. Inventory turnover
Cash $ 15,000 $ 20,000
Short-term Investments 11,000 27,000
Net Accounts Receivables 54,000 73,000
Merchandise Inventory 77,000 69,000
Prepaid Expenses 15,000 9,000
Total Current Assets 172,000 198,000
Total Current Liabilities 133,000 93,000
Income Statement:
Net Credit Sales $ 462,000
Cost of Goods Sold 315,000
Compute the following ratios for the current year:
a. Current ratio e. Days’ sales in inventory
b. Cash ratio f. Days’ sales in receivables
c. Acid-test ratio g. Gross profit percentage
d. Inventory turnover
TUTORIAL PREVIEW
a.
|
Current Ratio = Current Assets/ Current
Liabilities
|
|
|
Current Assets =
|
172,000
|
|
Current Liabilities =
|
133,000
|
|
Current Ratio =
|
1.29
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File name: ED-20 Victors Natural Foods.xlsx File type: .doc PRICE: $10
