Boyle Corporation had the following comparative current assets and current liabilities:
During 2011, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Instructions
Compute the following liquidity measures for 2011:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Receivables turnover.
5. Inventory turnover.

Question

Boyle Corporation had the following comparative current assets and current liabilities:  
During 2011, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Instructions
Compute the following liquidity measures for 2011:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Receivables turnover.
5. Inventory turnover.

Quizplus · Accepted Answer

The Answer of Boyle Corporation had the following comparative current assets and current liabilities:  
During 2011, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Instructions
Compute the following liquidity measures for 2011:
1. Current ratio.
2. Working capital.
3. Acid-test ratio.
4. Receivables turnover.
5. Inventory turnover.

Boyle Corporation Had the Following Comparative Current Assets and Current