Chapter 15, Problem 4SEA

FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown on pages 596–597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,600.

1. 1. Working capital
2. 2. Current ratio
3. 3. Quick ratio
4. 4. Return on owner’s equity
5. 5. Accounts receivable turnover and average number of days required to collect receivables
6. 6. Inventory turnover and average number of days required to sell inventory