Given the Following Balance Sheet, Calculate the Following Ratios for 2012

question 47

Essay

Given the following balance sheet, calculate the following ratios for 2012:
a) current ratio
b) accounts receivable turnover
c) inventory turnover
d) debt ratio
Jessica's Jewellery Store
Comparative Balance Sheet
For Years Ended December 31, 2012 and 2011
(in thousands)

In addition, credit sales for 2012 were $525,000 and cost of goods sold was $1,255,500.

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Definitions:

Break-even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Sales Dollars

The total monetary value of sales transactions made within a specific period, reflecting the revenue generated from selling goods or services.

Common Fixed Expenses

Regular, unchanged expenses that a business incurs, regardless of the level of production or sales volume.

Break-even

The point at which total costs and total revenue are equal, indicating that a business makes neither a profit nor a loss.