60.1K

Verified Solution

Link Copied!

Hi tutor, can you help with C - G. Thank you

The financial statements of Valerie's Natural Foods include the following items: (Click the icon to view the financial statements.) Compute the following ratios for the current year: (Click the icon to view the ratios.) a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio = Total current assets/Total current liabilities 1.26 b. Compute the cash ratio for the current year. (Round your answer to two decimal places, X.XX.) Cash ratio (Cash + Cash equivalents) / Total current liabilities 0.12 c. Compute the acid-test ratio for the current year. (Round your answer to two decimal places, X.XX.) Acid-test ratio (Cash + STI + Net current receivables) / Total current liabilities Financial statements - More info Current Year Preceding Year Balance Sheet: Cash 17,000 $ 29,000 21,000 a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Short-term Investments 13,000 Net Accounts Receivables 82,000 Merchandise Inventory 40,000 86,000 18,000 80,000 2,000 174,000 Print Done Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: 214,000 82,000 138,000 $ 474,000 Net Credit Sales Cost of Goods Sold 320,000 Print Done

Answer & Explanation Solved by verified expert

See Answer