1. Given: total current assets, $110,000; total assets, $250,000; total current liabilities, $97,000; total liabilities, $150,000; beginning inventory, $85,000; ending inventory, $89,500; cost of goods sold, $265,000. Calculate the inventory turnover.

a. 1.5

b. 0.7

c. 3.0

d. 0.3

2. A company has a current ratio of 2.1. What does that mean?

a. For each dollar of current liabilities, the company has approximately $2.10 of current assets

b. For each dollar of total assets, the company had approximately $2.10 of earnings

c. For each dollar of total liabilities, the company has approximately $2.10 of current assets

d. For each dollar of total liabilities, the company has approximately $2.10 of total assets