Answer Happy

Pharoah Ltd. has the following comparative statements of financial position data. Pharoah Ltd. Statements of Financial Position December 31 2020 2019 Plant assets (net) £229,600 £212,800 Inventory 67,200 56,000 Accounts receivable (net) 78,400 56,000 Cash 11,200 33,600 £386,400 £358,400 Share capital-ordinary, £10 par £156,800 £134,400 Retained earnings 61,600 44,800 Mortgage payable (6%) 112,000 112,000 Accounts payable 56,000 67,200 £386,400 £358,400
Additional information for 2020: 1. Net income was £31,360. 2. Sales on account were £468,160. Sales returns and allowances were £24,640. 3. Cost of goods sold was £212,800. Compute the following ratios at December 31, 2020. (Round answers to 1 decimal place, e.g. 1.5.) a. Current ratio :1 b. Acid-test ratio :1 C. Accounts receivable turnover times d. Inventory turnover times