BUSINESS MATH_x000D_USING EXCEL

Name _______________________________x000D__x000D_Date ______________________________

A B C D E F
1 Chapter 14 - Practice 06
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A. Calculate the current ratio for Max’s Lawn & Garden Equipment
for the years shown.
Current Current Current Expressed
4 Year
Assets Liabilities Ratio as a Ratio
5 2006 90,800 45,380
6 2007 110,000 59,000
7 2008 125,000 67,000
8 2009 143,000 80,000
9 2010 196,500 85,000
10
11 Directions:
12 1. Enter formulas in Column D to calculate the Current Ratio.
13 2. Format Column D for Number. Set Decimal places to 1.
14 3. In Column E, key in the Current Ratio Expressed as a Ratio.
15 4. Format Column E for General.
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B. Calculate the acid test ratio for Max’s Lawn & Garden Equipment for the
years shown.
Accounts Accounts Acid Test Expressed
19 Year Cash
Receivable Payable Ratio as a Ratio
20 2006 72,000 23,000 41000
21 2007 80,000 25,500 62000
22 2008 96,000 16,000 88000
23 2009 87,000 22,000 53000
24 2010 106,000 31,000 77000
25
26 Directions:
27 1. Enter formulas in Column E to calculate the Acid Test Ratio.
28 2. Format Column E for Number. Set Decimal places to 1.
29 3. In Column F, key in the Acid Test Ratio Expressed as a Ratio.
30 4. Format Column F for General.
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C. Calculate the return on investment for Max’s Lawn
& Garden Equipment for the years shown.
Owner's Return on
34 Year Net Income
Equity Investment
35 2006 125,000 444,000
36 2007 136,000 469,000
37 2008 110,800 498,000
38 2009 112,300 589,000
39 2010 108,000 637,000
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41 Directions:
1. Enter formulas in Column D to calculate Return on
42
Investment.
43 2. Format Column D for Percentage and 1 Decimal place.
44 3. Save the file as ch14pr06a.xlsx.
45