Reference no: EM132999053

Shown are selected financial data for Another World and Imports, Inc., at the end of the current year.

                                    Another World                    Imports,Inc.

Net credit sales             $675,000                            $560,000

Cost of goods sold            504,000                            480,000

Cash                                  53,000                            22,000

Accounts receivable (net)       75,000                          70,000

Inventory                              84,000                        160,000

Current liabilities                      105,000                       100,000

Assume that the year-end balances shown for accounts receivable and for inventory approximate the average balances of these items throughout the year.

Required:

Problem 1. Compute the working capital.

Problem 2. Compute the current ratio. (Round your answers to 1 decimal place.)

Problem 3. Compute the quick ratio. (Round your answers to 1 decimal place.)

Problem 4. Compute the number of times inventory turned over during the year and the average number of days required to turn over inventory. (Round your answers to the nearest whole number. Use 365 days a year.)

Problem 5. Compute the number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable. (Round your answers to the nearest whole number. Use 365 days a year.)

Problem 6. Compute the operating cycle. (Round your intermediate and final answers to whole numbers.)