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Need help with this required . Thank you Safeway Inc. had the following comparative current assets and current liabilities, as shown below Current Assets 31
Need help with this required . Thank you
Safeway Inc. had the following comparative current assets and current liabilities, as shown below Current Assets 31 Dec 31 Dec 2018 2019 Cash $ 65,000 $ 25,000 Marketable securities 30,000 15,000 Accounts receivable 42,000 80 000 Inventory 120,000 90,000 Prepaid expenses 35,000 20,000 Total Current Assets $292,000 $230,000 Current Liabilities Accounts payable $145,000 $130,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total Current $205,000 $175,000 liabilities Additional Information During 2019 net credit sales were $680,000 and the associated cost of goods sold was $365,000 Net cash provided by operating activities for 2019 was $142,000 Required: Based on the comparative current assets and current liabilities of Safeway Inc., as shown above compute the following ratios 1. Current ratio for both 2018 and 2019. (2 marks) 2. Quick ratio for both 2018 and 2019. (3 marks) 3. Current cash debt coverage ratio for 2019. (2 marks) 4. Receivables turnover for 2019. (2 marks) 5. Inventory turnover for 2019. (2 marks)Step by Step Solution
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