Shown below are selected financial data for Company A and Company B at the end of the current year:

	Company A	Company B
Net credit sales	$675,000	$560,000
Cost of goods sold	504,000	480,000
Cash	53,000	22,000
Accounts receivable (net)	75,000	70,000
Inventory	84,000	160,000
Current liabilities	105,000	100,000

a) For each of the two companies, compute the following and FILL THE TABLE (10 points)

	Company A	Company B
Working capital
Current ratio
Quick ratio
Accounts receivable turnover rate
Inventory turnover rate

Working capital:

Company A:

Company B:

Current ratio:

Company A:

Company B:

Quick ratio:

Company A:

Company B:

Accounts receivable turnover rate

Company A:

Company B:

Inventory turnover rate

Company A:

Company B:

b) To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B.? Why? Explain (5 points)