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
Powered by