Items

(a) through

(d) are based on the following information:

Required Answer the following multiple-choice questions:

a. Sharkey’s acid-test ratio as of December 31, 2007, is 1. 0.63.
2. 0.70.
3. 0.89.
4. 0.99.

b. Sharkey’s receivables turnover for 2007 is 1. 8 times.
2. 6 times.
3. 12 times.
4. 14 times.

c. Sharkey’s inventory turnover for 2007 is 1. 11.45 times.
2. 10.50 times.
3. 9.85 times.
4. 8.45 times.

d. Sharkey’s current ratio at December 31, 2007, is 1. 1.40.
2. 2.60.
3. 1.90.
4. 1.78.

e. If current assets exceed current liabilities, payments to creditors made on the last day of the year will 1. Decrease current ratio.
2. Increase current ratio.
3. Decrease working capital.
4. Increase working capital.

Cash Marketable securities Accounts receivable Inventory Net property, plant, and equipment Accounts payable Short-term notes payable Cash sales Credit sales Cost of goods sold SHARKEY CORPORATION Selected Financial Data As of December 31, 2007 2006 $ 8,000 $ 60,000 32,000 8,000 40,000 110,000 80,000 140,000 240,000 280,000 60,000 100,000 30,000 50,000 1,500,000 1,400,000 600,000 1,260,000 900,000 1,403,000