Question: 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
calculate the following liquidity measures for 2002:
[A] Current ratio
[B] Receivables turnover
[C] Inventory turnover
[D] Working capital
[E] Acid-test ratio