Homework Answers
a) Current Ratio = Current Assets / Current Liability
= $2,120 / $1,020
= 2.08
b) Working Capital = Current Assets - Current Liability
= $2,120 - $1,020
= $1,100
d) Receivable Turnover = Revenue / Average account receivable
= Revenue / (Begining account receivable +Ending account receivable) /2
= $4,000 / ($460 + $480) /2
= $4,000 / $470
= 8.51
c) Age of Receivable = Days in Year / Receivable Turnover
= 365 / 8.51 (Calculated above)
= 42.89
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