1. Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during year.....................................$ 525,500
Cost of merchandise sold during year ................................375,000
Accounts receivable, beginning of year...............................50,000
Accounts receivable, end of year.........................................40,000
Inventory, beginning of year..............................................110,000
Inventory, end of year ........................................................140,000
a. 8.3
b. 10.35
c. 11.7
d. 13.14
2. Based on the following data for the current year, what is the inventory turnover?
Net sales on account during year....................................$ 517,500
Cost of merchandise sold during year ...............................450,000
Accounts receivable, beginning of year..............................50,000
Accounts receivable, end of year........................................40,000
Inventory, beginning of year.............................................110,000
Inventory, end of year .......................................................140,000
a. 3.2
b. 3.6
c. 4.2
d. 7.2
3. Based on the following data, what is the quick ratio, rounded to one decimal place?
Accounts payable............................................$ 32,000
Accounts receivable...........................................64,000
Accrued liabilities................................................7,000
Cash...................................................................20,000
Intangible assets................................................40,000
Inventory...........................................................72,000
Long-term investments....................................100,000
Long-term liabilities...........................................75,000
Marketable securities.........................................35,000
Notes payable (short-term)................................25,000
Property, plant, and equipment.......................625,000
Prepaid expenses.................................................2,000
a. 3.2
b. 2.1
c. 1.9
d. 1.4