Dane Corporation had the following comparative current assets and current liabilities: (10 points)

Dec. 31, 2014 Dec. 31, 2013 -------------- -------------

Current assets Cash $ 60,000 $ 40,000

Marketable securities 50,000 10,000

Accounts receivable 70,000 100,000

Inventory 100,000 90,000

Prepaid expenses 30,000 20,000 ------------- ------------

Total current assets $310,000 $260,000

Current liabilities

Accounts payable $140,000 $100,000

Salaries payable 50,000 30,000

Income tax payable 20,000 10,000 ------------- ------------

Total current liabilities $210,000 $140,000

During 2014, credit sales and cost of goods sold were $800,000 and $400,000, respectively.

INSTRUCTIONS Compute the following liquidity measures for 2014 (round to 2 decimal places) SHOW ALL CALCULATIONS:

1. Current ratio.

2. Working capital.

3. Acid-test ratio.

4. Receivables turnover.

5. Inventory turnover.

Answer rating: 100% (QA)

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