Question Details

Bradley Corporation had the following comparative current assets 



Ex. 1
Bradley Corporation had the following comparative current assets and current liabilities:
Dec. 31, 2002 Dec. 31, 2001
Current assets
Cash $ 60,000 $ 30,000
Short-term investments 40,000 10,000
Accounts receivable 55,000 95,000
Inventory 110,000 90,000
Prepaid expenses 35,000 20,000
Total current assets $300,000 $245,000
Current liabilities
Accounts payable $140,000 $110,000
Salaries payable 40,000 30,000
Income tax payable 20,000 15,000
Total current liabilities $200,000 $155,000
During 2002, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Net
cash provided by operating activities for 2002 was $213,000.
Instructions
Compute the following liquidity measures for 2002:
1. Current ratio.
2. Quick ratio.
3. Current cash debt coverage ratio.
4. Receivables turnover.
5. Inventory turnover.



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