Solution-Calculate the working capital and current ratio

Calculate the working capital and current ratio

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Reference no: EM132840392

Question - Following information is available about Prims Company for the year 2019:

Accounts payable	$30,000
Accounts receivable	35,000
Accrued liabilities	7,000
Cash	25,000
Intangible assets	40,000
Inventory	72,000
Long-term investment	100,000
Long-term liabilities	75,000
Marketable securities	36,000
Notes payable (short-term)	20,000
Property, plant, and equipment	400,000
Prepaid expenses	2,000

Sales during the year was $250,000. Accounts receivable in 2018 were 35,000.

Required - Based on the above information, calculate the following:

a) Working Capital

b) Current Ratio

c) Quick ratio

d) Accounts receivable turnover ratio and number of days in the collection.

Reference no: EM132840392

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Calculate the working capital and current ratio

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