Problem - The following information data was taken from the accounts (some) of Sandee's Corporation as of December 31, 2017:

Accounts and Notes Payable (short-term) $ 46,500

Accounts Receivable net, beg. 58,000

Accounts Receivable net, end 64,600

Sales Revenues 388,000

Sales Returns and allowances 20,000

Sales Discounts 3,000

Other expenses (all cash expenses) 165,900

Marketable securities 15,900

Current liabilities 50,000

Long - term debts 130,000

Cash 35,000

Prepaid Expenses 19,000

Purchases (net) 127,900

Inventories, beg. 81,500

Inventories, end. 92,000

Total debts 180,000

Instructions:

1. On the basis of the information above determine the December 31, 2017:

a. amount of working capital

b. current ratio

c. receivable turnover

d. inventory turnover

e. debt to total assets

2. This company has liquidity? Explain.

3. This company has solvency? Explain.