Find the current ratio and quick asset ratios

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Reference no: EM132494444

1. Complete the following tasks using the given data set.

Assets $

Cash 200 000

Accounts receivable 400 000

Inventory 1 200 000

Plant 600 000

Total assets 2 400 000

Liabilities $

Accounts payable 800 000

Long-term debt 400 000

Capital 1 200 000

2 400 000

Profit and loss

Sales 1 600 000

Cost of goods sold 1 000 000

Operating expenses 200 000

Interest 100 000

Taxes 100 000

Net profit 200 000

Question 1: Find the following:

(a) Current ratio

(b) Quick asset ratios

(c) Inventory turnover

(d) Collection period

(e) Fixed asset turnover

(f) Times interest covered

(g) Net profit margin

(h) Return on total assets

(i) Return on capital.

Reference no: EM132494444

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