Problem - 1 Booker Corporation had the following comparative current and current Current assets Dec 31 2017 Dec 31, 2016 Cash $ 60.000 $30 000 Short-term investments 40.000 10.000 Accounts receivable 55.000 95 000 Inventory 110.000 30 000 Prepaid expenses 35.000 20.000 Total current assets $300.000 $245.000 Current habilities Accounts payable $140.000 $110.000 Salaries payable 40.000 30.000 Income tax payable 20.000 15.000 Total current liabilities $200,000 $155.000 During 2017. credit sales and cost of goods sold were $750,000 and $400,000, respectively Instructions Compute the following liquidity measures for 2017: 1. Current ratio 2. Working capital 3 Acid-test ratio 4 Accounts receivable turnover 5. Inventory turnover Problem-2 Selected information from the comparative financial statements of Fava Company for the year ended December 31, appears below: 2016 Accounts receivable (net) $ 180,000 $200,000 Inventory 140.000 160.000 Total assets 1.200.000 800 000 Current liabilities 140.000 110.000 Long-term debt 400.000 300.000 Net credit sales 1.330.000 700.000 900.000 530.000 Cost of goods sold Interest expense 50.000 25 000 60.000 29 000 Income tax expense Net income 150.000 85,000 Instructions Answer the following questions relating to the year ended December 31, 2017 Show computation Inventory turnover for 2017 is Times interest earned in 2017 is The debt to assets ratio for 2017 is Accounts receivable turnover for 2017 is Return on assets for 2017 is