Calculate the working capital for given years

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Reference no: EM131519043

Question: A friend who owns a Sydney restaurant has presented the following information to you and asked you to comment on the restaurant's performance in 20X2

Required: (a) For both years calculate the working capital.

(b) For both years calculate the current asset ratio.

(d) Comment on whether the restaurant is becoming more or less liquid. Revenue for the year 20X2 was $500,000 (55% of this was credit sales) and the cost of sales was $150,000. Calculate the following for 20X2:

(e) The accounts receivable turnover.

(f) The accounts receivable average collection period.

(g) The inventory turnover.

(h) The average age of inventory

Reference no: EM131519043

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