Safeway Inc. had the following comparative current assets and current liabilities, as shown below:

31 Dec 2019 31 Dec 2018

Current Assets

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 liabilities $205,000 $175,000

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)