Problem - The following information data was taken from the accounts (some) of Sandee's Corporation as of December 31, 2017:
Accounts and Notes Payable (short-term) $ 46,500
Accounts Receivable net, beg. 58,000
Accounts Receivable net, end 64,600
Sales Revenues 388,000
Sales Returns and allowances 20,000
Sales Discounts 3,000
Other expenses (all cash expenses) 165,900
Marketable securities 15,900
Current liabilities 50,000
Long - term debts 130,000
Cash 35,000
Prepaid Expenses 19,000
Purchases (net) 127,900
Inventories, beg. 81,500
Inventories, end. 92,000
Total debts 180,000
Instructions:
1. On the basis of the information above determine the December 31, 2017:
a. amount of working capital
b. current ratio
c. receivable turnover
d. inventory turnover
e. debt to total assets
2. This company has liquidity? Explain.
3. This company has solvency? Explain.