Question

1 Requirements 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 turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use 1. 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.) Evaluate the company's liquidity and current debt-paying ability for 2018. Has it improved or deteriorated from 2017? As a manager of this company, what would you try to improve next year? 2. 3. Print Done The financial statements of Evans News, Inc., include the following items (Click the icon to view the financial statements ) 囲 Read the requirements 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, X.Xx.) - Current ratio 2018 2017 Data Table 2018 2017 2016 Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities 28,000 23,000 69,000 75,000 8,000 203,000 45,000 90,000 22,000 $ 11,000 46,000 95,000 11,000 185,000 30,000 135,000 20,000 66,000 10,000 Income statement: Net credit sales $501,000 $ 503,000 Cost of goods sold 270,000 284,000 Print Done

Answer 1

35000 3.39 2 8 2o18 36S. 0 2013; gut so-s8 : 88 days, 2018 :125+3y-y-ma

The above picture show the calculation of various ratios for 2017 & 2018.