Question 1:
The current ratio for a company with current assets of $70,000, quick assets of $30,000, net assets of $150,000 current liabilities of $50,000 and net sales of $80,000 could be:
A. 0.20.
B. 1.40.
C. 3.00.
D. 1.00.
Question 2:
Rick's has a cash balance of $80,000; short-term investments of $20,000; total receivables of $60,000; and inventory of $450,000. Current liabilities total $200,000. Ricks' acid test (quick ratio) is within:
A. 3.05 to 1.
B. 2.25 to 1.
C. 0.80 to 1.
D. 0.54 to 1.
Question 3:
Isaiah Company has total income of $720,000, beginning net assets of $2,100,000, and ending total assets of $2,300,000. Evaluate Isaiah's return on total assets is:
A. 32.7%.
B. 11.2%.
C. 3.1%.
D 31.3%.
Question 4:
Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is:
A. 3.846.
B. 4.167.
C. 4.000.
D. 2.000.
Question 5:
With a starting accounts receivable balance of $80,000; an ending accounts receivable balance of $120,000; and net credit sales of $900,000, the accounts receivable turnover is:
A. 9.00.
B. 4.50.
C. 7.50.
D. 11.25.
Question 6:
Topiary's Unlimited has a cost of goods sold of $1,600,000. The beginning merchandise inventory was $195,000 and the ending merchandise inventory is $205,000. Evaluate Topiary's merchandise inventory turnover ratio is:
A. 8.21 times.
B. 7.80 times.
C. 8.00 times.
D. 9.00 times.
Question 7:
Amanda's has a cost of goods sold of $1,900,000. The starting and ending merchandise inventories are $133,000 and $125,000, respectively. Amanda's merchandise inventory turnover ratio is:
A. 65.5 times.
B. 33.8 times.
C. 14.7 times.
D. 29.4 times.
Question 8:
Walker Clothing Store had a balance in the Accounts Receivable account of $390,000 at the starting of the year and a balance of $410,000 at the end of the year. Total credit sales during the year amounted to $2,000,000. The average collection period of the receivables in terms of days was
a. 30 days.
b. 365 days.
c. 146 days.
d. 73 days
Question 9:
Parr Hardware Store had net credit sales of $6,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the starting and end of the year were $600,000 and $700,000, respectively. The receivables turnover was
a. 7.7 times.
b. 10.8 times.
c. 9.3 times.
d. 10 times.
Question 10:
Waters Department Store had total credit sales of $16,000,000 and cost of goods sold of $12,000,000 for the year. The average inventory for the year amounted to $2,000,000. Inventory turnover for the year is
a. 8 times.
b. 14 times.
c. 6 times.
d. 4 times.
Question 11:
Waters Department Store had total credit sales of $16,000,000 and cost of goods sold of $12,000,000 for the year. The average inventory for the year amounted to $2,000,000. The average number of days in inventory during the year was
a. 91 days.
b. 61 days.
c. 46 days.
d. 26 days.
Question 12:
The current assets of Kile Company are $150,000. The current liabilities are $100,000. The current ratio expressed as a proportion is
a. 150%.
b. 1.5 : 1
c. .67 : 1
d. $150,000 ÷ $100,000
Question 13:
A company has a receivables turnover of 10 times. The average total receivables during the period are $400,000. Evaluate the amount of net credit sales for the period?
a. $40,000
b. $4,000,000
c. $480,000
d. Cannot be determined from the information given
Question 14:
Gold Clothing Store had a balance in the Accounts Receivable account of $820,000 at the starting of the year and a balance of $880,000 at the end of the year. Net credit sales during the year amounted to $7,650,000. The receivables turnover ratio was
a. 9.0 times.
b. 4.5 times.
c. 8.7 times.
d. 9.3 times.
Question 15:
Gold Clothing Store had a balance in the Accounts Receivable account of $810,000 at the starting of the year and a balance of $850,000 at the end of the year. Total credit sales during the year amounted to $6,640,000. The average collection period of the receivables in terms of days was
a. 91.3 days.
b. 45.6 days.
c. 30 days.
d. 46.7 days.
Question 16:
The given information pertains to Soho Company. Consider that all balance sheet amounts represent both average and ending balance figures. Consider that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders' equity-common 160,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales $ 120,000
Cost of goods sold 66,000
Gross margin 54,000
Operating expenses 30,000
Net income $ 24,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share .50
Evaluate the current ratio for Soho?
a. 1.80
b. 1.30
c. 1.40
d. .64
Question 17:
The Given information pertains to Soho Company. Consider that all balance sheet amounts represent both average and ending balance figures. Consider that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 25,000
Inventory 20,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 50,000
Long-term liabilities 90,000
Stockholders' equity-common 160,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales $ 120,000
Cost of goods sold 66,000
Gross margin 54,000
Operating expenses 30,000
Net income $ 24,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share .50
Evaluate the receivables turnover for Soho?
a. 2.1 times
b. 2 times
c. 4.8 times
d. 9.6 times
Question 18:
The given financial statement information is available for Houser Corporation:
2011 2010
Inventory $ 44,000 $ 43,000
Current assets 81,000 106,000
Total assets 432,000 358,000
Current liabilities 30,000 36,000
Total liabilities 102,000 88,000
The current ratio for 2011 is
a. .37:1.
b. 2.7:1.
c. .79:1.
d. 4.24:1.