Answer:
Liquidity measures for the year 2017 are as under:
Current Ratio = 1.5  
Working Capital = $100,000  
Acid Test Ratio = 0.95  
Accounts Receivables Turnover = 10 times  
Inventory turn over = 4 times  
Explanation:
<u>Current Ratio</u>
         Current Ratio = Current Assets ÷ Current Liabilities
                           <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016
</u>
                       $300,000 ÷ $200,000                   $245,000  ÷ $155,000  
Current Ratio                 1.5                                                  1.6  
<u>Working Capital</u>  
        Working Capital = Current Assets – Current Liabilities
                           <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016
</u>
                       $300,000 – $200,000                   $245,000  – $155,000 
Working Capital         $100,000                                     $90,000  
  
<u>Acid Test Ratio</u>
         Acid Test Ratio = (Current Assets – Inventory)  ÷ Current Liabilities
                           <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016</u>
($300,000 – $110,000) ÷ $200,000     ($245,000 – $90,000) ÷ $155,000
Acid Test Ratio           0.95                                                1.00  
  
<u>Accounts Receivables Turnover Times</u>   
Accounts Receivables Turnover = Credit Sales ÷ Average Accounts Receivables
Average Accounts Receivables = (Opening Accounts Receivables + Closing Accounts Receivables) ÷ 2
Average Accounts Receivables = ($55,000 + $95,000) ÷ 2 = $75,000
Accounts Receivables Turnover = $750,000  ÷ $75,000 = 10 Times
<u>Inventory Turnover Times</u>
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Average Inventory = (Opening Inventory + Closing Inventory)  ÷ 2
Average Inventory =  ($110,000 + $90,000)  ÷ 2 = $100,000
Inventory Turnover =  $400,000  ÷ $100,000 = 4 Times