Year 2 Year 1

Cash $37,500 $32,250

Short term investment $90,000 $60,000

Accounts receivable, net $85,500 $79,500

Merchanise inventory $121,000 $125,000

Prepaid expense $12,100 $9,700

Plant Asset $388,000 $338,000

Accounts payable $113,400 $107,800

Net Sales $711,000 $676,000

Cost of goods sold $390,000 $375,000

1. Compute the working capital for year 2.

2. Compute the current ratio for year 2.

3. Compute the accounts receivable turnover for year 2

4. Compute the inventory turnover for year 2.