Question

Kershaw Corporation had the following comparative current assets and current liabilities:

During 2012, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net cash provided by operating activities for 2012 was $140,000.

Instructions

Compute the following liquidity measures for 2012:

1. Current ratio

2. Current cash debt coverage ratio

3. Receivables turnover

4. Inventory turnover

Answer

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