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Q9: Exam Company reported the following financial statement data: Exam Company Balance Sheet As for December 31 Current Year $51,590 83,030 123,560 258,180 80,200 201,900 $540,280 Last Year $57,280 87,700 122,670 Cash Accounts Receivable, Net Merchandise Inventory Total Current Assets Long Term Investments Plant Assets, Net TOTAL ASSETS 267,650 65,320 233,800 $566,770 $66,900 13,600 $57,200 10,900 Accounts Payable Salaries Payable Total Current Liabilities Long Term Liabilities Total Liabilities 80,500 48,100 128,600 68,100 97,200 165,300 316,980 94,700 Paid in Capital Retained Earnings Total Equity TOTAL LIABILITIES AND EQUITY 337,170 64,300 411,680 $540,280 401,470 $566,770 Exam Company Income Statement For Year Ending December 31 Sales Revenue $300,000 Cost of Goods Sold 195,000 Gross Profit 105,000 Selling expenses 46,200 Imin expenses 52,160 Total Operating Expenses 98,360 Net Income $6,640 a. Calculate the Current Ratio for Current Year (show formula as well) Current Ratio = b. Calculate the Current Year AR Turnover and Days Sales Uncollected Ratios (show formulas) AR Turnover = Days Sales Uncollected = c. Calculate the Current Year Inventory Turnover and Days Sales in Inventory Ratio (show formulas) Inventory Turnover = Days Sales in Inventory = d. Explain what these ratios tell you specifically about this company

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