Homework Answers
| Ex-1 | ||||||
| 2009 | 2008 | 2007 | ||||
| Item | ||||||
| Net Sales | 128.00% | 120.00% | 100.00% | |||
| Cost of goods sold | 125.00% | 122.50% | 100.00% | |||
| Gross profit | 140.00% | 110.00% | 100.00% | |||
| Ex-2 | ||||||
| a) | Current ratio | |||||
| current assets/current liabilities | ||||||
| (25000+35000+120000+95000)/120000 | ||||||
| 2.29 | ||||||
| b) | Acid test ratio | |||||
| (current assets-inventories)/current liabilities | ||||||
| (25000+35000+120000)/120000 | ||||||
| 1.5 | ||||||
| c) | Receivable turnover | |||||
| net sales/average account receivable | ||||||
| average A/R = | (120000+80000)/2 | |||||
| 100000 | ||||||
| 810,000/100,000 | ||||||
| 8.1 | times | |||||
| d) | inventory turnover | |||||
| cost of goods sold/average turnoverh | ||||||
| (95000+62000)/2 | ||||||
| 78500 | ||||||
| 615,000/78500 | ||||||
| 7.83 | Times | |||||
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