Reference no: EM132508638

Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The company's stock is traded on the NASDAQ and has provided investors with significant returns over the past few years. Selected information from the company's balance sheet follows. For 2007, the company reported sales revenue of $3,706,900 and cost of goods sold of $1,515,815.

CINTAS

Balance Sheet

(amounts in thousands)

                                                              2007                             2006

Cash                                          $ 35,360                    $ 38,914

Marketable securities                      120,053                     202,539

Accounts receivable, net                    408,870                  389,905

Inventories                                       231,741                   198,000

Prepaid expense                                 15,781                      11,163

Accounts payable                                64,622                      71,635

Accrued taxes                                      70,763                    95,363

Accrued liabilities                                 263,512                  239,061

Long-term debt due within one year             4,141                 26,653

Required:

Question 1: Compute the current ratio, inventory turnover ratio, and accounts receivable turnover ratio (assuming that 60 percent of sales were on credit).