Answer :
| No | Particular | |
| 1 | Current ratio | 2.9 : 1 |
| 2 | Quick ratio | 1.7 : 1 |
| 3 | Receivable turnover | 6.02 Times |
| 4 | Inventory turnover | 3.55 Times |
Working notes for the above answer is as under
1. Current ratio = Current assets/current liabilities
= (15,800+70,600+61,000) / 50,300
= 147400/ 50300
=2.9 : 1
2. Quick ratio = current assets – inventories/current liabilities
= (15800+70600) / 50,300
=86400/50300
=1.7 : 1
3. Receivable turnover = net credit sales / average accounts receivable
= (($410,500 -19200) / (70,600 + 59400)/2)
= 391,300 / 65,000
= 6.02 times
4. Inventory turnover
= Cost of goods sold / average inventory
, = 197,700 / (61,000+50,300)/2
= 197,700/55,650
= 3.55 times.
