From the Balance Sheet and Income Statement Information below, calculate the following ratios:

[a.] Return on Sales

[b.] Current Ratio

[c.] Inventory Turnover – If there are no beginning inventory or ending inventory figures, then use the Merchandise Inventory figure.

ABC INC.

Income Statement

Year Ended December 31, 2018

Net Sales Revenue

$20,941

Cost of Goods Sold

7,055

Gross Profit

13,886

Operating Expenses

7,065

Operating Income

6,821

Interest Expense

210

Income Before Taxes

6,611

Income Tax Expense

2,563

Net Income

$4,048

ABC INC.

Balance Sheet

December 31, 2018

Assets

Current Assets

Cash

$2,450

Accounts Receivable

1,813

Merchandise Inventory

1,324

Prepaid Expenses

1,709

Total Current Assets

7,296

Long-Term Assets

18,500

Total Assets

$25,796

Liabilities

Current Liabilities

$7,320

Long-Term Liabilities

4,798

Total Liabilities

12,028

Stockholders’ Equity

Common Stock

6,568

Retained Earnings

7,200

Total Stockholders’ Equity

13,768

Total Liabilities & Stockholders’ Equity

$25,796

1.

NOTES: 1- Round up

2- Your responses should be in the following formats

a. XX%

b. x. xx

c. x. xx