Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below:

 

	(in thousands)
	As of December 31
	2014	2013
Cash ...................................	$ 21	$ 35
Marketable securities                   (current) ...........	27	22
Accounts receivable (net) ....	60	98
Inventory ............................	105	142
Prepaid expenses .................	5	3
Land and building (net) .........	247	315
Accounts payable ................	57	75
Accrued expenses ...............	10	14
Notes payable (short-term) ...	8	4
Bonds payable .....................	52	66

 

 

	(in thousands)
	As of December 31
	2014	2013
Cash sales ...........................	$750	$675
Credit sales (% of cash                      sales) .......	82%	85%
Cost of goods sold     (percent of total sales) ......	60%	58%
Net income ..........................	$ 30	$ 38
Interest expense ..................	6	9
Income tax expense .............	6	7

 

 

1. Sculley's current ratio as of December 31, 2014, is

a.	2.84
b.	3.37
c.	2.91
d.	3.33

          

 

1. Refer to the Sculley Corporation information above. Sculley's quick (acid test) ratio as December 31, 2014, is

a.	1.44
b.	1.50
c.	1.67
d.	1.66

 

1. Refer to the Sculley Corporation information above. Sculley's account receivable turnover for 2014 is

a.	13.85.
b.	10.00.
c.	9.49.
d.	7.78.

 

1. Refer to the Sculley Corporation information above. Sculley's merchandise inventory turnover for 2014 is

a.	3.43.
b.	5.68.
c.	6.63.
d.	6.79.

 

1. Refer to the Sculley Corporation information above. Sculley's turnover of assets and number of times interest earned for 2014 are respectively

 

     Asset Turnover                      Times Interest Earned

a.	2.97                                      5.0
b.	2.94                                      5.0
c.	2.53                                      6.0
d.	2.53                                      7.0

 

Answer rating: 100% (QA)

Question 1 Answer Current ratio c 291 Working notes Current Assets Cash 21 Add Marketable securities ... View the full answer