Solution-Compute the acid-test ratio and current ratio

Compute the acid-test ratio and current ratio

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Reference no: EM131629685

Exercise - Wiemers Corporation's comparative balance sheets are presented below.

WIEMERS CORPORATION Balance Sheets December 31
	2017	2016
Cash	$ 4,300	$ 3,700
Accounts receivable (net)	21,000	23,600
Inventory	10,100	7,300
Land	20,300	26,500
Buildings	70,100	70,100
Accumulated depreciation-buildings	(14,500)	(10,100)
Total	$111,300	$121,100
Accounts payable	$ 12,200	$ 31,500
Common stock	74,200	68,400
Retained earnings	24,900	21,200
Total	$111,300	$121,100

Wiemers's 2017 income statement included net sales of $105,000, cost of goods sold of $59,300, and net income of $14,000.

Compute the following ratios for 2017.

(a) Current ratio

(b) Acid-test ratio

(d) Inventory turnover

(e) Profit margin

(f) Asset turnover

(g) Return on assets

(h) Return on common stockholders' equity

(i) Debt to assets ratio

Reference no: EM131629685

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Compute the acid-test ratio and current ratio

Reference no: EM131629685

Reference no: EM131629685

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