Exercise 193 Booker Corporation had the following comparativecurrent assets and current liabilities: Dec. 31,...

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Exercise 193 Booker Corporation had the following comparativecurrent assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016Current assets Cash $60,000 $30,000 Short-term investments 40,00010,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000Prepaid expenses 35,000 20,000 Total current assets $300,000$245,000 Current liabilities Accounts payable $140,000 $110,000Salaries payable 40,000 30,000 Income tax payable 20,000 15,000Total current liabilities $200,000 $155,000 During 2017, creditsales and cost of goods sold were $750,000 and $400,000,respectively. Compute the following liquidity measures for 2017:(Round current and acid-test ratios to 2 decimal places, e.g.52.71.) 1. Current ratio :1 2. Working capital $ 3. Acid-test ratio:1 4. Accounts receivable turnover times 5. Inventory turnovertimes

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Requirement Computation of the following Liquidity measures for 2017 Here only the ratios are computed No Interpretation is given as not mentioned in the problem 31st Dec 2017 31st Dec 2016 Current Assets Cash 60000 30000 Short Term Investment 40000 10000 See Answer

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In: AccountingExercise 193 Booker Corporation had the following comparativecurrent assets and current liabilities: Dec. 31, 2017...Exercise 193 Booker Corporation had the following comparativecurrent assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016Current assets Cash $60,000 $30,000 Short-term investments 40,00010,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000Prepaid expenses 35,000 20,000 Total current assets $300,000$245,000 Current liabilities Accounts payable $140,000 $110,000Salaries payable 40,000 30,000 Income tax payable 20,000 15,000Total current liabilities $200,000 $155,000 During 2017, creditsales and cost of goods sold were $750,000 and $400,000,respectively. Compute the following liquidity measures for 2017:(Round current and acid-test ratios to 2 decimal places, e.g.52.71.) 1. Current ratio :1 2. Working capital $ 3. Acid-test ratio:1 4. Accounts receivable turnover times 5. Inventory turnovertimes