The financial statements of Neale Corporation include the following information: Current Year Prior Year Balance sheet: Cash $ 24,000 $ 25,300 Short-term investments 36,000 29,600 Accounts receivable, net 76,200 83,250 Inventory 90,000 81,950 Prepaid expenses 19,800 9,900 Total current assets 246,000 230,000 Total current liabilities 140,000 115,560 Income statement: Net credit sales $ 645,000 Cost of goods sold 467,000 Required: Calculate the following ratios for the current year: current ratio acid-test ratio inventory turnover accounts receivable turnover days’ sales in average receivables to the nearest day
- The financial statements of Neale Corporation include the following information:
Current Year Prior Year
Balance sheet:
Cash $ 24,000 $ 25,300
Short-term investments 36,000 29,600
Accounts receivable, net 76,200 83,250
Inventory 90,000 81,950
Prepaid expenses 19,800 9,900
Total current assets 246,000 230,000
Total current liabilities 140,000 115,560
Income statement:
Net credit sales $ 645,000
Cost of goods sold 467,000
Required:
Calculate the following ratios for the current year:
- current ratio
- acid-test ratio
- inventory turnover
- accounts receivable turnover
- days’ sales in average receivables to the nearest day
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