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E14-7 Willingham Company Ltd. has the following comparative statements of financial position data WILLINGHAM COMPANY...

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Accounting

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E14-7 Willingham Company Ltd. has the following comparative statements of financial position data WILLINGHAM COMPANY LTD. Statements of Financial Position December 31 2017 2016 Plant assets (net) 205,000 190,000 Inventory 60,000 50,000 Accounts receivable (net) 70,000 50,000 Cash 10,000 30,000 345,000 320,000 Share capital-ordinary, 10 par 140,000 120,000 Retained earnings 55,000 40,000 Mortgage payable (6%) 100,000 100,000 Accounts payable 50,000 60,000 345,000 320,000 Additional information for 2017: 1. Net income was 28,000. 2. Sales on account were 418,000. Sales returns and allowances were 22,000. 3. Cost of goods sold was 190,000. Instructions Compute the following ratios at December 31, 2017 (a) Current ratio. (c) Accounts receivable turnover. (b) Acid-test ratio. (d) Inventory turnover

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