Question: 4. Jumpstart Corp had the following comparative current assets and current liabilities for 2021 & 2020: Current assets Cash Marketable securities Accounts receivable (net)
4. Jumpstart Corp had the following comparative current assets and current liabilities for 2021 & 2020: Current assets Cash Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets........ Current liabilities Accounts payable. Salaries payable. Income taxes payable Total current liabilities Dec. 31, 2021 Dec.31.2020 $ 30,000 $ 30,000 40,000 55,000 110,000 10,000 95,000 90,000 35,000 $270,000 20,000 $ 245.000 $ 120,000 $110,000 30,000 40,000 20,000 $ 180,000 15,000 $155.000 During 2021, credit sales and cost of goods sold were $450,000 and $250,000 respectively. Net income was reported at $100,000. Average Owners' Equity amounted to $400,000 Instructions Compute the following for 2021 1. Current ratio (2 pt.) 2. Working capital (2 pt.) 3. Quick ratio (3 pts.) 4. Days' sales uncollected (4 pts.) 5. Inventory Turnover (3 pts.) 6. Days' payable (4 pts.) 7. Return on Equity (3 pts)
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