Cost of JUU Cash Inventory 10.UUU Taxes payable 25.000 Land 1.000 Notes payable (due in 6 months) Salaries payable 900 4,300 Requirements: A Compute the quick ratio. 2.04 B. Determine the amount of working capital. 18, SOO C. Assume that cash is used to pay the balance due on accounts payable. 1. Compute the new quick ratio. 2.79 2. Compute the Swemount of working capital. 18, Soo D. Compute the accounts payable turnover ratio (use year-end amounts.) in the amou used to pay the 2.19 18,500 2:13 Note: For question D, we do not have beginning balance in questioni, so you could use" 1500"as the average Accounts Payable, and"3200" as the numerator to calculate the accounts payable turnover ratio. 2) According to the producer price index database maintained by the Bureau of Labor Statistics the average cost of computer equipment fell 20.9 percent between 2007 and 2008. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2008. 2008 $98,913 59,249 39,664 36,943 Sales Revenues Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2007 $121,761 71,583 50,178 36,934 474 12,770 5,540 $ 7,230 565 2,156 1,024 $ 1,132 1410 620 Homework 4 Accounting and Financial Reporting Professor Dalton Tong Carey Business School A. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages (rounded to one decimal place). How did the change in computer prices compare to the changes in Computer Tycoon's sales revenues? B. Conduct a vertical analysis by expressing each line as a percentage of total revenues (round one decimal place). Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2008 compared to 2007