Cash

40,000

Accounts Receivables

55,000

Inventories

50,000

Supplies

35,000

Notes payable (Long term)

80,000

Accounts payable

60,000

Wages payable

40,000

Calculate and Analyze the Current Ratio and Quick Ratio for the company for 2016. If the Industry norms for Current Ratio (2.0) and Quick ratio (1.0), analyse the company ratios are favourable or unfavourable. (6 marks)

2. Credit revenue from operations $560,000; Debtors $70,000; cash $10,000. Average Collection Period is _________ (2 marks)

3. Cash Balance $15,000; Trade Receivables $35,000; Inventory $40,000; Trade Payables $24,000 and Bank Overdraft is $6,000. Current Ratio will be