1. Rainsoft Company Selected data from the financial statements are provided below:

   	2015	2014	2013
   Cash	$ 44,000	$ 28,000	$ 14,000
   Accounts Receivable	84,000	32,000	114,400
   Inventory	44,000	166,000	100,000
   Prepaid Expenses	46,000	36,000	41,600
   Total Current Assets	$218,000	$262,000	$270,000
   Total Current Liabilities	$130,000	$144,000
   Net Credit Sales	442,000	652,000
   Cost of Goods Sold	336,000	598,000
   Net Cash Flows from Operating Activities	32,000	58,000

   Refer to Rainsoft Company. Assume that competitors in the industry have an average accounts receivable turnover ratio of 7.8 times in 2015. What is the companys accounts receivable turnover ratio for 2015?

   		5.26
   		7.62
   		7.80
   		8.91

2. Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding?

   		95,000
   		100,000
   		105,000
   		150,000

3. Presented below is the operating activities section of a statement of cash flows for 2014:

   Operating activities:
   Net income		$120,000
   Add:	Depreciation	10,000
   	Decrease in accounts receivable	5,000
   		$135,000
   Deduct:	Decrease in accounts payable	15,000
   	Net cash inflow from operating activities	$120,000

   Which method of preparing the operating activities section was used?

   		The direct method.
   		The indirect method.
   		Either method.
   		Cannot be determined without further information.

4. Rio Imports Information from the financial statements are provided below:

   	2015	2014
   Current Liabilities	$460,000	$320,000
   Long-Term Liabilities	240,000	640,000
   Stockholders' Equity	840,000	1,080,000
   Net Cash Flows from Operating Activities	160,000	102,000
   Interest and Principal Payments	24,000	16,000
   Net Sales	950,000	900,000
   Net Income	180,000	144,000
   Interest Expense	17,000	23,000
   Income Taxes	32,000	29,000
   Dividends Paid to Common Stockholders	30,000	60,000

   Refer to Rio Imports. The debt-to-equity ratio for 2015 is

   		an indicator that the companys ability to meet current interest payments to creditors is increasing.
   		increasing slightly from 2014 to 2015.
   		an indicator that for every $1 of capital that has been provided by stockholders, creditors provided $0.83.
   		an indicator that the companys reliance on stockholders for funding increased from 2014 to 2015.