Financial ratios Shown below are some key figures from the balance sheets of Minuteman Gas Company for two successive years: Dec 31, 2015 Dec 31, 2014

	December 31, 2015	December 31, 2014
Net credit sales	675,000	560,000
Cost of goods sold	504,000	480,000
Cash	53,000	22,000
Accounts receivable (net)	75,000	70,000
Inventory	84,000	160,000
Current liabilities	105,000	100,000

For each year, write down formulas, calculation and answers.

Calculate:

5.1. Working capital

5.2. Current ratio

5.3. Quick ratio

5.4. Compute the number of times inventory turned over during the year, and the average number of days required to turn over inventory.

5.5. Compute the number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable.

5.6. Compute the operating cycle.