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Booker
Corporation had the following comparative current assets and current
liabilities:
Dec.
31, 2015 Dec. 31, 2014
Current
assets
Cash $ 60,000 $ 30,000
Short-term
investments 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 2015,
credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Ex. 209 (Cont.)
Instructions
Compute the
following liquidity measures for 2015:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Accounts receivable turnover.
5. Inventory turnover.
