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Financial Ratios

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Solve for the following ratios.
See attached file.

Current ratio
Acid test
Receivables turnover
Inventory turnover

2.
Profit Margin
Asset Turnover
Return on Assets
Return on Equity.

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Solution Summary

The solution gives the formulas and solves the following financial ratios: inventory turnover, current ratio, acid test ratio, receivables turnover, profit margin, total assets turnover, return on assets, return on equity.

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1.
Current ratio = current assets/current liabilities
CR = (All assets except plant assets) / (Accounts payable)
CR = 177500/60000
CR = 2.96

Acid test = (current asset - ...

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