During 2017 Accounts receivable was R85000,Inventory R70 000 and in 2018 ,Credit sales and cost of goods sold were R500 000 and R250 000 respectively while in 2019, credit sales and cost of goods sold were R600,000 and R350,000, respectively. Required: Compute the following liquidity measures for 2018 and 2019: A.Current ratio. (4 marks) B.Acid-test ratio. (4 marks) C.Receivables turnover. (4 marks) D. Inventory turnover. (4 marks)

Question 5 [16 Marks] Motswedi Company had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current assets Cash R 20,000 R 30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets R260,000 R245,000 Current liabilities R140,000 R110,000 Accounts payable Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities R200,000 R155,000