The finanaal statements of Vanna\'s Natural Foods include the folowing items Com

Question

The finanaal statements of Vanna's Natural Foods include the folowing items Compute the following ratios for the current year Cick the icon to view the financial statements.) (Cick the icon to view the ratios.) Financial Statements a. Compute the current ratio fof the current ear. (Abbreviations used ST-Short-term investments Round your answer to two decimal places x Current ratio b. Compute the cash ratio lor the current year. dRound your answer to two decimal places. XXX.) Cash ratio C. Compute the acldtest ratio for the current year. (Round your answer to two decimal places, XxX.) Acid-test ratio d. Compute the inventory turnover 1or the current year. Round your answer to t decimal places. X.XA Inventory turnover e. Compute the days' salas in iventory for the current year. (Round intermediary cakculations to two decimal places, XXX and round your final answer to the nearest whole day) Days' sales in inventory f. Compute the days salas in recavabies tor the current yar (Round intemadiary cakulations to two decimal places, XXX and round your final answer to nearest whole day.) Days' sales in rcrivables; g. Compute the gross profit percentage for the current year (Round your answer to one lenth of a percent, XX%) Gross profit percentage Current Year ear Balance Sheet: Cash Short-tem Investments Nel Accounts Receivables Merchandise Inventory Prepaid Expenses Tctal Current Assets Total Curent Lisbiilies Income Statement: Net Crecit Sales Cost of Goods Sold 22,000 S 17,000 49,000 34,000 30,000 24,000 92.000 72,000 5,000 223,000 97,000 188,000 135,000 470,000 315,000 Print Done days More Info a. Current ratilo b. Cash ratio c. Acd-Irest ratio d. Inventory turnower e. Days' sales in iwentory t. Days' sales in receivables g. Gross profit percentage Print Done Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

A) current ratio = current assets / current liabilities

                          = 188,000/135,000

                         =1.39:1

       Current ratio = 1.39:1

B) Cash ratio = (cash + cash equivalents)/current liabilities

                      = 22,000/135,000

                      =0.16

        Cash ratio = 0.16:1

C) acid test ratio = current assets –inventory / current liabilities

                            = 188,000-84,000/135,000

                            =0.77

           Acid test ratio = 0.77:1

D) inventory turnover ratio = cost of goods sold / average inventory

                                            =315,000/(84,000+72,000/2)

                                            =4.03

                  Inventory turnover ratio = 4.03 times

E)days sales in inventory = (ending inventory/cost of goods sold)/365

                                      = (72,000/315,000)*365

                                      = 83.42

         Days sales in inventory = 83.42 days

F) days sales in receivables =account receivables/net credit sales * 365

                                             = 48,000/470,000 * 365

                                             =37.27

           Days sales in receivables = 37.27 days

G) gross profit percentage = (sales-cost of goods sold)/sales

                                             =(470,000-315,000)/470,000

                                             = 155,000/470,000

                                            = 32.97%

           Gross profit percentage = 32.97%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.