Calypso Corporation reported the following comparative current assets and current liabilities:

Dec. 31, 2021 Dec. 31, 2020

Current assets

Cash.................................................................... $ 30,000 $ 25,000

Trading investments................................................ 40,000 15,000

Accounts receivable................................................ 65,000 95,000

Inventory................................................................. 120,000 90,000

Prepaid expenses................................................. 35,000 20,000

Total current assets...................................... $290,000 $245,000

Current liabilities

Accounts payable................................................ $125,000 $115,000

Salaries payable....................................................... 35,000 30,000

Income tax payable............................................. 25,000 10,000

Total current liabilities................................ $185,000 $155,000

During 2020, credit sales and the cost of goods sold were $480,000 and $288,000, respectively.

Instructions

Calculate the following ratios for 2021; Show your work (6 MARKS):

(a) Current ratio

(b) Receivables turnover

(c) Inventory turnover