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:

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Definitions:

Hierarchy of Needs

A model introduced by Abraham Maslow that is often depicted as a pyramid, representing the progression through different levels of human needs from physiological up to self-actualization.

Self-Actualized

The realization or fulfillment of one's talents and potentialities, considered as a drive inherent in everyone, often associated with Maslow's hierarchy of needs.

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep, which are considered the foundation of Maslow's hierarchy of needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a hierarchy of needs culminating in self-actualization.