Lakota Equipment reported the following items on December 31, 2018 (last year?s amounts are also given as needed):

Requirements

1. Compute Lakota Equipment?s (a) quick ratio, (b) current ratio, and (c) accounts receivable turnover for 2018.

2. Evaluate each ratio value as strong or weak. Assume Lakota Equipment sells on terms of net 30.

Transcribed Image Text:

Accounts Payable. . Cash. . Inventory: December 31, 2018... December 31, 2017. . Net Credit Sales . Long-term Assets Long-term Liabilities. Accounts Receivable, Net: December 31, 2018. December 31, 2017.. Cost of Goods Sol.. Short-term Investments.. Other Current Assets.. Other Current Liabilities . .. $ 43,400 21,000 . $ 27,000 23,000 115,000 14,000 4,000 15,500 22,000 18,000 245,000 42,000 5,000 I... ..... ......▪ .........