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. Shown below are selected financial datafor Company A and Company B at the end of the current year: Company A Company B Net credit

.Shown below are selected financial datafor Company A and Company B at the end of the current year:

Company A

Company B

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

a)For each of the two companies, compute the following and FILL THE TABLE(10 points)

Company A

Company B

Working capital

Current ratio

Quick ratio

Accounts receivable turnover rate

Inventory turnover rate

Working capital:

Company A:

Company B:

Current ratio:

Company A:

Company B:

Quick ratio:

Company A:

Company B:

Accounts receivable turnover rate

Company A:

Company B:

Inventory turnover rate

Company A:

Company B:

b)To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B.? Why?Explain (5 points)

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