Answer:
See below
Explanation:
Data given
Cash and cash equivalents $760 $77
Accounts receivables net $2,080 $1,890
Inventory $830 $810
Other current assets $440 $433
Total current assets $4,110 $3,210
Total current liabilities $2,100 $1,590
Net credit sales $8,258
Cost of goods sold $5,328
1. Current ratio = Current assets/Current liabilities
= 4,110/2,100
= 1.96
2. Accounts receivable turnover = Credit sales/Average accounts receivables
= 8,258÷ [(2,080+1,890)/2]
= 8,258 ÷ 1,985
= 4.16 times
3. Average collection period = Average accounts receivables/Credit sales × 365 days
= (1,985/8,258) × 365
= 87.7 days
4. Inventory turnover = Cost of goods sold/Average inventory
= 5,328/[830 + 810)/2]
= 5,328/820
= 6.5 times
5. Days in inventory = Average inventory/Cost of goods sold × 365
= (820/5,328) × 365
= 56.2 days
