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Directions: Compute the following liquidity ratios based on the information provided below. a) Inventory Turnover Sales $ 750,000 Cost of Goods Sold $ 473,000 Merchandise
| Directions: Compute the following liquidity ratios based on the information provided below. | ||||||||
| a) | Inventory Turnover | |||||||
| Sales | $ 750,000 | |||||||
| Cost of Goods Sold | $ 473,000 | |||||||
| Merchandise Inventory | ||||||||
| Beginning of year | $ 40,000 | |||||||
| End of Year | $ 44,000 | |||||||
| Merchandise Inventory Turnover | ||||||||
| b) | Working Capital & Current Ratio | |||||||
| June 30,2018 Current Assets are $650,000 | ||||||||
| June 30, 2018 Current Liabilities are $250,000 | ||||||||
| Issued long term note to the bank for $80,000 cash | ||||||||
| Before the Transaction | After the Transaction | |||||||
| 1 | Working Capital | $ 400,000 | $ 480,000 | |||||
| 2 | Current Ratio | |||||||
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The International Corporate Governance System Audit Roles And Board Oversight
Authors: F. Lessambo
1st Edition
134947178X, 978-1349471782
