Birch Ltd had the following comparative current assets and current liabilities:
During 2020, credit sales and cost of sales were $450,000 and $250,000, respectively. Net cash provided by operating activities for 2020 was $134,000.
Compute the following liquidity measures for 2020:
1. Current ratio
2. Quick ratio
3. Current cash debt coverage
4. Receivables turnover
5. Inventory turnover

Question

Birch Ltd had the following comparative current assets and current liabilities:
  During 2020, credit sales and cost of sales were $450,000 and $250,000, respectively. Net cash provided by operating activities for 2020 was $134,000.
Compute the following liquidity measures for 2020:
1. Current ratio
2. Quick ratio
3. Current cash debt coverage
4. Receivables turnover
5. Inventory turnover

Quizplus · Accepted Answer

The Answer of Birch Ltd had the following comparative current assets and current liabilities:
  During 2020, credit sales and cost of sales were $450,000 and $250,000, respectively. Net cash provided by operating activities for 2020 was $134,000.
Compute the following liquidity measures for 2020:
1. Current ratio
2. Quick ratio
3. Current cash debt coverage
4. Receivables turnover
5. Inventory turnover

Birch Ltd Had the Following Comparative Current Assets and Current