Reference no: EM132956089
Problem - Liquidity Ratios - You have been asked to evaluate the liquidity position of Burgos Fitness Center. The following data are from Burgos' annual report:
Cash P130,000
Trading Investments 60,000
Accounts Receivable:
Jan. 1 156,000
Dec. 31 214,000 Cash
Merchandise Inventory
Jan. 1 252,000
Dec. 31 186,000
Current Liabilities 240,000
Cost of Goods Sold 3,000,000
Credit Sales 5,000,000
Required - Using these data,
1. Calculate the Burgos Working capital?
2. Calculate the Current ratio?
3. Calculate the Quick ratio?
4. Calculate the Inventory turnover?
5. Calculate the Accounts receivable turnover?
6. Calculate the Average age of receivables?