(solution) Based on the financial statements for Jackson Enterprises (income

(solution) Based on the financial statements for Jackson Enterprises (income

Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20–, was $21,600. Assume 365 days per year.

Working capital

Current ratio

Quick ratio

Return on owner’s equity

Accounts receivable turnover and average number of days required to collect receivables

Inventory turnover and average number of days required to sell inventory