(a) | Current ratio:- | |||||
a. | Current Assets | |||||
Cash+Accounts Receivable+Inventory | 50000+280000+240000 | $ 570,000 | ||||
b. | Current Liabilities | |||||
Accounts Payable+ Accrued Taxes | 220000+80000 | $ 300,000 | ||||
Ratio (a/b) | 1.90 | times | ||||
(b) | Quick Ratio:- | |||||
a. | Quick Assets (Cash+Accounts Receivable) | 50000+280000 | $ 330,000 | |||
b. | Current Liabilities | $ 300,000 | ||||
Ratio (a/b) | 1.10 | times | ||||
(c) | Debt to total assets ratio:- | |||||
a. | Total Liabilities | 220000+80000+118000 | $ 418,000 | |||
b | Total Assets | $ 950,000 | ||||
Ratio (a/b) | 2.27 | times | ||||
(d) | Assets Turnover:- | |||||
a. | Net Sales | $ 3,040,000 | ||||
b. | Total assets | $ 950,000 | ||||
Ratio (a/b) | 3.20 | times | ||||
(e) | Average collection period:- | |||||
a. | Net Credit Sales | 3040000*75% | $ 2,280,000 | |||
b. | Accounts Receivable | $ 280,000 | ||||
c | Number of Days in year | 365 | ||||
Ratio ((b/a) *c) | 44.82 | days | ||||
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5. The balance sheet for the Novi Corporation is shown below. Sales for the year were...
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