1 5.2 Ratio Analysis Points: 3 items @ 4 points = 12 points 2 3 Directions: Compute the following liquidity ratios based on the information provided below. 4 5 a) Inventory Turnover 6 Sales $750,000 Cost of Goods Sold $473,000 8 Merchandise Inventory 9 Beginning of year $40,000 10 End of Year $44,000 11 12 Merchandise Inventory Turnover 13 14 b) Working Capital & Current Ratio 15 June 30,2018 Current Assets are $650,000 16 June 30, 2018 Current Liabilities are $250,000 17 Issued long term note to the bank for $80,000 cash 18 19 Before the Transaction After the Transaction 20 1 Working Capit. $400,000 $480,000 21 2 Current Ratio