Calculate current ratio and acid-test ratio

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Question - Concord Corporation has been operating for several years. On December 31, 2020, it presented the following SFP.

Concord CORPORATION Statement of Financial Position December 31, 2020

Cash $41,200

Accounts payable $72,600

Accounts receivable (net) 76,600

Mortgage payable 124,000

Inventory 92,200

Common shares 144,600

Equipment (net) 220,000

Retained earnings 88,800

$430,000 $430,000

Cost of goods sold in 2020 was $421,000, operating expenses were $50,800, and net income was $26,800. Accounts payable suppliers provided operating goods and services. Assume that total assets are the same in 2019 and 2020.

Required - Calculate each of the following ratios: (a) Current ratio (b) Acid-test ratio (c) Debt-to-total-assets ratio (d) Rate of return on assets (e) Days payables outstanding.

Reference no: EM132646128

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