Acc350 Managerial Accounting: ED-20 The Financial statements of Victor’s Natural Foods

Acc350 Managerial Accounting ED-20 Computing key ratios The Financial statements of Victor’s Natural Foods include the following item: Current Year Preceding Year Balance sheet: Cash 15,000 20,000 Short-term Investments 11,000 27,000 Net Accounts Receivables 54,000 73,000 Merchandise Inventory 77,000 69,000 Prepaid Expenses 15,000 9,000 Total Current Assets 172,000 198,000 Total Current Liabilities 133,000 93,000 Income Statement: Net Credit Sales 462,000 Cost of Goods Sold 315,000 Compute the following ratios for the current year: a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage