Glencoe Accounting

Chapter 9: Financial Statements for a Sole Proprietorship

Homework Practice

Computing Ratios

Instructions

Based on the account balances given, compute the following ratios, rounding your answer to two decimal places:

a.   current ratio

b.  quick ratio

c.   return on sales

Accounts Receivable

$ 5,000

Ben Franklin, Withdrawals

2,000

Cash in Bank

6,000

Accounts Payable

5,500

Rent Expense

1,100

Utilities Expense

1,200

Sales

5,200

Supplies

900

Ben Franklin, capital

12,000

Computer Equipment

6,500

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