1.When working capital is positive, the current ratio is a. Less than 1 b. 1 c. Greater than 1 d. zero e. none of the above

2.Weakness of the current ratio is a. it measures a company's ability to pay current liabilities using current assets b. that it doesn't take into account the composition of the current assets c. it can be calculated in different ways d. that it can be expressed as a percentage, as a rate, or as a proportion e. none of the above

3.A company's accounts receivables turnover of 36.5 days. The average net receivables during the period are $500,000. What is the amount of net credit sales for the period?

4. If the average collection is 50 days, what is the account receivable turnover #?