(a)Calculate the following liquidity ratios for 2024 and 2023. Round current ratio and acid-test ratio to 2 decimal places, e.g. 0.75:1,receivables turnover and inventory turnover to 1 decimal place, eg. 52.7 and collection period, days sales in inventory and operating cycleto O decimal places, e.g. 125.)Current ratioAcid-test ratioReceivables turnoverCollection periodInventory turnoverDays sales in inventoryOperating cycle2024timesdaystimesdaysdays2023#1#1timesdaystimesdaysdays Blossom Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below.Current assetsCashShort-term investmentsAccounts receivableInventoryBLOSSOM INC.Balance Sheet (partial)December 31 (in millions)Prepaid expensesTotal current assetsTotal current liabilitiesAdditional information:(in millions)Net credit salesCost of goods sold2024$7756067689941$2,4512024$1,88520235.329$905858452250$1,3042023$823$8,255 $3,9372,6462022$604049157424$1,189$747

The ratio analysis is an accounting method that uses financial statements like balance sheet and…

Answered: Calculate the following liquidity…

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Accounting

Calculate the following liquidity ratios for 2024 and 2023 receivables turnover and inventar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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