MBA Accounting Ratios for 2016 and 2017

MBA Accounting

a. Compute the following ratios for 2016 and 2017
2017 2016
i. Current ratio
Current assets (CA) 472,800 461,400
Current liabilities (CL) 153,800 130,600
Current Ratio (CA/CL) 3.07 3.53
ii. Quick ratio
Current Assets (CA) 472,800 461,400
Stocks (S) 17,000 7,140
Current liabilities (CL) 153,800 130,600
Quick ratio ((CA -
S)/CL) 2.96 3.48
iii. Inventory turnover
COGS 386,200 232,800
Average inventory (I) 17,000 7,140
Inventory turnover
(COGS/I) 22.72 32.61
iv.
Average collection
period
Net credit sales (NS) 550,100 346,100
Accounts receivables (AR) 110,100 108,150
((AR/NS) * 365) 73.05 114.06
v. Debt ratio
Total debt (D) 490,500 144,700
Total Assets (A)
2,332,80
0
1,080,90
0
(D/A) 0.21 0.13
vi. Debt-equity ratio
Loan from bank (D) 490,500 144,700
Equity (E)
1,238,60
0 729,000
(D/E) 0.40 0.20