Question

Please help me with requirements 1C-g, 2 and 3. thank you

%E12-32B (similar to) Question Help The financial statements of Evans News, Inc, include the following items B Click the icon to view the financial statements) Read the courements Requirement 1. Calculate the following ratios for 2018 and 2017 When calculating days, round your answer to the nearest whole number a. Current ratio Select the formula and then enter the amounts to calculate the current ratio (Round the ratios to two decimal places Xxx) Current assets Current liabilities . Current ratio 2018 5 233.000 133.000 175 2017 $ 232,000 96,000 2.42 cash and cash equivalents. Round the ratio tolwe decimal places, XXX) b. Quick (acid-test) ratio Select the formula and then enter the amounts to calculate the acid-test ratio (Abbreviations used Avg = average ST short-term, and Cash Cash + ST investments + Netreceivables / Current liabilities = Acid-test ratio 2018 ($ 30,000 + $ 15,000 + $ 73,000 X $ 133,000 = 0.95 2017 ($ 45,000 + $ 29,000 + $ 76,000 / $ 96000 1.56 c. Inventory tumover and days' inventory outstanding (10) Data Table 2018 2017 2016 Begin by selecting the formula and then enter the amounts to calculate inventory turnover (Round the ratios to two decimal places X.XX.) Cost of goxho Average inventory Inventory tumaver 2018 2017 Balance sheet: Cash Short-term investments Net receivables Inventory 45,000 29,000 76,000 78,000 55000 57000 39,000 $ 15,000 73,000 92000 14.000 233,000 70,000 133 000 Requirements -X 4.000 Prepaid expenses Total current assets Accounts payable Total current liabilities Income statement Nel credit sales Cost of goods sold 232,000 55,000 96000 25 000 490,000 $ 271,000 509,000 281,000 ............ 1. Calculate the following ratios for 2018 and 2017 When calculating days, round your answer to the nearest whole number a. Current ratio b. Quick (acid-test) ratio c. Inventory tumover and days' inventory outstanding DIO) d. Accounts receivable turnover e Days' sales in average receivables or days' sales outstanding (DSO) t Accounts payable tumover and days payable outstanding (DPO) Use cost of goods sold in the formula for accounts payable turnover g. Cash conversion cycle in days) (When calculating days, round your answer to the nearest whole number) 2. Evaluate the company's liquidity and current debt-paying ability for 2018 Has it improved or deteriorated from 2017? 3. As a manager of this company, what would you try to improve next year? Print Done Choos O red Clear All Check Answer

Answer 1

Average Inventory = (Inventory at the beginning of the year + Inventory at the end of the year)/2 Average Inventory (2018) = = ($78,000 + $92,000)/2 $ 85,000.00 Average Inventory (2017) = ($57,000+ $78,000)/2 $ 67,500.00 Solution c. Year Cost of Goods sold 2018 $ 2,71,000 2017 $ 2,81,000 Average Inventory 85,000 67,500 Inventory Turnover 3.19 4.16

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