The following financial data were taken from the annual financial statements of Smith Corporation:

Required
a. Based on these data, calculate the following for 2008 and 2009:
1. Working capital
2. Current ratio
3. Acid-test ratio
4. Accounts receivable turnover
5. Merchandise inventory turnover
6. Inventory turnover in days
b. Evaluate the results of your computations in regard to the short-term liquidity of thefirm.

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2007 2009 Current assets Current liabilities Sales Cost of goods sold Inventory Accounts receivable S 450,000 390,000 1450,000 1,180,000 280,000 120,000 S 400,000 300,000 1,500,000 1,020,000 200,000 110,000 S 500,000 340,000 1,400,000 1,120,000 250,000 105,000