Scully Corporation's comparative balance sheets are presented in the attached file. Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and a net income of $15,000.
Compute the following ratios for 2008.
(a) Current ratio. = Current assets/current liabilities = (4,300+21,200+10,000)/12,370 = 2.87
(b) Acid-test ratio. = (cash + receivables)/current liabilities = ...
Solution Summary
This solution provides an example of how to compute all the required ratios which are common principles used within the field of accounting. All work is shown.
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