The financial statements of Victory's Natural Foods include the following items:
View the financial statements.
Compute the following ratios for the current year:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Inventory turnover
f. Days' sales in receivables
e. Days' sales in inventory
g. Gross profit percentage
a. Compute the current ratio for the current year. (Round your answer to two de
Current ratio =
Financial Statements
Current Year Preceding Year
Balance Sheet:
Cash
$
23,000 $
24,000
Short-term Investments
12,000
25,000
Net Accounts Receivable
42,000
86,000
Merchandise Inventory
70,000
66,000
Prepaid Expenses
10,000
3,000
Total Current Assets
157,000
204,000
Total Current Liabilities
137,000
89,000
Income Statement:
Net Credit Sales
$
474,000
Cost of Goods Sold
312,000