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problem: Doyle Corporation had the following comparative current assets & current liabilities

 

Dec. 31, 2002

Dec. 31, 2001

Current assets

 

 

Cash

$60,000

$30,000

Marketable securities

40,000

10,000

Accounts receivable

55,000

95,000

Inventory

110,000

90,000

Prepaid expenses

35,000

20,000

 

   

Total current assets

$300,000

$245,000

Current liabilities

 

 

Accounts payable

$140,000

$110,000

Salaries payable

40,000

30,000

Income tax payable

20,000

15,000

 

   

Total current liabilities

$200,000

$155,000

During 2002, credit sales & cost of goods sold were $750,000 & $400,000, respectively.

INSTRUCTIONS
find out the following liquidity measures for 2002:

[A] Current ratio
[B] Receivables turnover
[C] Inventory turnover
[D] Working capital
[E] Acid-test ratio

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920601

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