How to calculate each of the required calculations:
Blue Sea Corporation's books revealed the following for 2014 and 2015:
2015, Dec 31 2014, Dec 31
Cash $27,750 $21,250
Accounts receivable 42,000 37,500
Inventory 72,250 61,600
Other prepaid assets 12,500 12,500
Accounts payable 41,250 38,000
Other current payables 13,000 15,000
Shareholders' equity 100,250 79,850
Sales 525,000 450,750
Cost of sales 300,000 240,750
Operating expenses 70,000 65,000
Net income 155,000 145,000
Required:
a. Calculate the number of days to collect the average receivable in 2015
b. Calculate the number of days inventory was held in 2015
c. Calculate the average number of days to pay an account during 2015
d. Calculate the current ratio for the 2015 year-end
e. Calculate the quick ratio for the 2015 year-end