Boyle Corporation Had the Following Comparative Current Assets and CurrentDuring 2014, Credit Sales and Cost of Goods Sold Were

The Answer of Boyle Corporation Had the Following Comparative Current Assets and CurrentDuring 2014, Credit Sales and Cost of Goods Sold Were

Boyle Corporation Had the Following Comparative Current Assets and CurrentDuring 2014, Credit Sales and Cost of Goods Sold Were

The Answer of Boyle Corporation Had the Following Comparative Current Assets and CurrentDuring 2014, Credit Sales and Cost of Goods Sold Were

Solved

Boyle Corporation Had the Following Comparative Current Assets and Current

question 64

Essay

Boyle Corporation had the following comparative current assets and current liabilities:
$\begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\\text { Current assets }\\\text { Cash } & \$ 20,000 & \$ 30,000 \\\text { Short-term investments } & 40,000 & 10,000 \\\text { Accounts receivable } & 55,000 & 95,000 \\\text { Inventory } & 110,000 & 90,000 \\\text { Prepaid expenses } & 35,000 & 20,000 \\\text { Total current assets }&\$260,000&\$245,000\\\\\text { Current liabilities }\\\text { Accounts payable } & \$ 140,000 & \$ 110,000 \\\text { Salaries payable } & 40,000 & 30,000 \\\text { Income tax payable } & 20,000 & 15,000\\\text { Total current liabilities }&\$200,000&\$155,000\end{array}$ During 2014, credit sales and cost of goods sold were $600,000 and $350,000, respectively.
Required: Compute the following liquidity measures for 2014:
$Boyle Corporation had the following comparative current assets and current liabilities: \begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\ \text { Current assets }\\ \text { Cash } & \$ 20,000 & \$ 30,000 \\ \text { Short-term investments } & 40,000 & 10,000 \\ \text { Accounts receivable } & 55,000 & 95,000 \\ \text { Inventory } & 110,000 & 90,000 \\ \text { Prepaid expenses } & 35,000 & 20,000 \\ \text { Total current assets }&\$260,000&\$245,000\\\\\text { Current liabilities }\\\text { Accounts payable } & \$ 140,000 & \$ 110,000 \\ \text { Salaries payable } & 40,000 & 30,000 \\ \text { Income tax payable } & 20,000 & 15,000\\\text { Total current liabilities }&\$200,000&\$155,000 \end{array} During 2014, credit sales and cost of goods sold were $600,000 and $350,000, respectively. Required: Compute the following liquidity measures for 2014:$

Definitions:

Organizational Culture

The shared values, beliefs, and practices that influence the behavior and interactions of members within an organization.

Business Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of a business transaction.

Overall Set

The total collection or group of items, elements, or properties being considered or discussed.

Organization

can refer to a collective group of people structured and managed to meet a need or pursue collective goals, or the act of organizing.