Purple Company has a current ratio of 2.2 on December 31. On that date its current assets are as follows:

Purple Company's current liabilities at the beginning of the year were \(\$ 195,000\) and during the year its operating activities provided a cash flow of \(\$ 35,000\).

a. What are the firm's current liabilities at December 31?

b. What is the firm's working capital on December 31?

c. What is the quick ratio on December 31 ?

d. What is the firm's operating-cash-flow-to-current-liabilities ratio?

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Cash and cash equivalents Short-term investments Accounts receivable (net). Inventory.... Prepaid expenses. Current assets $13,000 90,000 125,000 178,500 11,500 $418,000