Boyle Corporation had the following comparative current assets and current liabilities: During 2014, credit sales and cost of goods sold were $600,000 and $350,000, respectively.
Instructions
Compute the following liquidity measures for 2014:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Accounts receivable turnover.
5. Inventory turnover.

Question

Boyle Corporation had the following comparative current assets and current liabilities:  During 2014, credit sales and cost of goods sold were $600,000 and $350,000, respectively.
Instructions
Compute the following liquidity measures for 2014:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Accounts receivable turnover.
5. Inventory turnover.

Quizplus · Accepted Answer

The Answer of Boyle Corporation had the following comparative current assets and current liabilities:  During 2014, credit sales and cost of goods sold were $600,000 and $350,000, respectively.
Instructions
Compute the following liquidity measures for 2014:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Accounts receivable turnover.
5. Inventory turnover.

Boyle Corporation Had the Following Comparative Current Assets and Current