Financial statements for Rarig Company appear below:

Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Times interest earned.
f)Debt-to-equity ratio.

Question

Financial statements for Rarig Company appear below:

Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Times interest earned.
f)Debt-to-equity ratio.

Quizplus · Accepted Answer

The Answer of Financial statements for Rarig Company appear below:

Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Times interest earned.
f)Debt-to-equity ratio.

Financial Statements for Rarig Company Appear Below