Computation of current ratio and working capital

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Computation of Current ratio, Working capital, Acid-test ratio, Receivables turnover and Inventory turnover.

Boyle Corporation had the following comparative current assets and current liabilities:


Dec. 31, 2002

Dec. 31, 2001

Current assets






Marketable securities



Accounts receivable






Prepaid expenses




Total current assets



Current liabilities



Accounts payable



Salaries payable



Income tax payable




Total current liabilities



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

Compute the following liquidity measures for 2002:

1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Receivables turnover.
5. Inventory turnover.

Reference no: EM1315909

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