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Questions and Answers
FORMULA FOR CURRENT RATIO
CR=CA/CL
FORMULA FOR QUICK RATIO
QR=CA-PREPAID-INVENTORY OR SUPPLIES/CL
FORMULA FOR ACCOUNTS RECEIVABLE TURNOVER RATIO
ARTR=NET SALES/AVARAGE ACCOUNTS RECEIVABLE (NET)
FORMULA FOR AVERAGE COLLECTION PERIOD
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FORMULA FOR INVENTORY TURNOVER RATIO
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FORMULA FOR AVERAGE DAYS IN INVENTORY
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FORMULA FOR NUMBER OF DAYS IN OPERATING CYCLE
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FORMULA FOR BAD DEBTS
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FORMULA FOR DEBIT TO EQUITY RATIO
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