5. A company comparative partial balance sheets and partial income statement are presented. Balance sheet:...
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5. A company comparative partial balance sheets and partial income statement are presented. Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Total current liabilities Income statement: Net credit sales Cost of goods sold Current Year Preceding Year $ 18,000 $ 23,000 14,000 30,000 57,000 76,000 80,000 72,000 18,000 12,000 $ 187,000 $ 213,000 $ 148,000 $ 108,000 $ 477,000 330,000 Instructions: compute the following ratios for the current year. Show the formulas used and explain each result. Do not round and use at least 2 decimal spaces. a) Current ratio b) Acid-test ratio c) Inventory turnover d) Days in inventory e) Days in accounts receivable
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