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    Calculating Financial Ratios from Data

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    Use the financial data shown below to calculate the following ratios for the current year:

    (a) Current ratio.
    (b) Acid-test ratio.
    (c) Accounts receivable turnover.
    (d) Days' sales uncollected.
    (e) Inventory turnover.
    (f) Days' sales in inventory.

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    Solution Preview

    Please find the solution attached.

    (a)  Current ratio.
    (b)  Acid-test ratio.
    (c)  Accounts receivable turnover.
    (d)  Days' sales uncollected.
    (e)  Inventory turnover.
    (f)  Days' sales in inventory.

    II year I ...

    Solution Summary

    The solution attached an Excel file in which the answers are laid out with their calculation methods viewable by highlighting the relevant cells.