Working Capital and Short-Term Firm Liquidity Ratios Favor Company has a current ratio of 2.15 (2.15:1) on December 31. On that date its current assets are as follows:

Cash and cash equivalents $28,000

Short-term investments 87,000

Accounts receivable (net) 125,000

Inventory 178,500

Prepaid expenses 11,500

Current assets $430,000

Favor Companys current liabilities at the beginning of the year were $195,000 and during the year its operating activities provided a cash flow of $33,830.

a. What are the firms current liabilities at December 31? Round answer to the nearest whole number.

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b. What is the firms working capital on December 31? Round answer to the nearest whole number.

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c. What is the quick ratio on December 31? Round answer to 2 decimal places.

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d. What is the firms operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places.

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