Working Capital and Short-Term Firm Liquidity Ratios Purple Company has a current ratio of 2.2 on December 31. On that date its current assets are as follows: Cash and cash equivalents $13,000 Short-term investments 90,000 Accounts receivable (net) 125,000 Inventory 178,500 Prepaid expenses 11,500 Current assets $418,000 Purple Company's current liabilities at the beginning of the year were $195,000 and during the year its operating activities provided a cash flow of $35,000. a. What are the firm's current liabilities at December 31? b. What is the firm's working capital on December 31? c. What is the quick ratio on December 31? Round answer to 2 decimal places. d. What is the firm's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Accounts Receivable and Inventory Ratios Purple Company, whose current assets at December 31 are shown below, had net sales for the year of $580,000 and cost of goods sold of $339,000. At the beginning of the year, accounts receivable (net) were $121,000 and inventory was $160,500. Cash and cash equivalents $13,000 Short-term investments 90,000 Accounts receivable (net) 125,000 Inventory 178,500 Prepaid expenses 11,500 Current assets $418,000 Instructions: Round turnover ratios to two decimal places. Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). . a. What is the company's accounts receivable turnover? b. What is the company's average collection period? days c. What is the company's inventory turnover? d. What is the company's days' sales in inventory? days Ratios Analyzing Long-Term Firm Solvency The following information is available for Rae Company: Annual Data 2019 2018 Interest expense $170,000 $166,000 Income tax expense 126,000 117,000 Net income 310,000 275,000 Capital expenditures 435,000 350,000 Cash provided by operating activities 247,000 220.000 Year-End Data Total liabilities Total stockholders' equity Dec. 31, 2019 Dec. 31, 2018 $3,400,000 $2,900,000 2,200,000 2,000,000 Calculate the following: Note: Round all answers to two decimal places. 2. 2019 debt-to-equity ratio. 6. 2019 times-interest-earned ratio. c. 2019 operating-cash-flow-to-capital-expenditures ratio. Check