Question :
81.Wangley Company has an inventory turnover of 8. Which statement : 1302940
81.Wangley Company has an inventory turnover of 8. Which statement is true?
A.Wangley has about 2 months of sales in its inventory.
B.Wangley takes about 46 days from the time an item is sold until Wangley collects the cash.
C.Wangley takes about one month from the time an item is purchased until the cash is collected from the sale of the inventory.
D.Wangley sells it inventory 8 times faster than other companies.
82.Redzone Corporation reported $400,000 in sales on account plus another $60,000 in cash sales last year. Cost of goods sold for the period totaled $220,000. The beginning balance in accounts receivable was $32,000 and the ending balance was $50,000. How much is the company’s accounts receivable turnover?
A.9.2 times
B.4.8 times
C.8.0 times
D.12.5 times
83.Fenwick Holdings reported cash sales in 2014 of $220,000. Accounts receivable at the beginning of the year totaled $420,000, with a balance of $490,000 at the end of the year. If the company’s accounts receivable turnover is 3.5 for the year, how much are its total sales for the year?
A.$2,250,000
B.$1,715,000
C.$1,495,000
D.$1,935,000
84.Real Crisp Company reported cost of goods sold of $800,000 last year. The company’s beginning inventory balance was $58,000 and the ending inventory balance was $54,000. How many days will it take the company to sell its inventory as of year end?
A.13.8 days
B.14.8 days
C.24.6 days
D.26.5 days
85.Benzo Limited reported an inventory turnover of 14.5 times last year. Beginning inventory was $290,000 and ending inventory was $260,000. How much was cost of goods sold?
A.$3,770,000
B.$3,987,500
C.$4,205,000
D.$7,975,000
86.Zin Company repoted cost of goods sold of $1,500,000 last year. The company’s beginning inventory balance was $110,000 and the ending inventory balance was $86,000. How many days will it take the company to sell off all of its inventory?
A.13.6 days
B.17.4 days
C.20.9 days
D.26.8 days
87.Which of the following is the most stringent test of a company’s ability to meet its current obligations?
A.Current ratio
B.Quick ratio
C.Debt-equity ratio
D.Times interest earned
88.Which of the following is included in the calculation of the current ratio, but not the quick ratio?
A.Inventory
B.Cash
C.Accounts receivable
D.Marketable securities
89.Wilker Industries has a current ratio of 1.8. If Wilker collects a payment from a customer on account, what is expected to happen to the company’s current ratio?
A.It will increase.
B.It will decrease.
C.It will stay the same.
D.The effect is based on the amount of debt a company holds at the end of the period.
90.Organic Ways is a large food and drug retailer with more than 1,700 stores in the U.S. and Canada. The following financial information relates to fiscal years, 2013 and 2014.
(In Millions) 2014 2013
Sales$34,286$38,185
Cost of goods sold32,00034,000
Accounts receivable577461
Merchandise inventory2,9052,510
How much is the company’s inventory turnover for 2014?
A.9.08 times
B.11.02 times
C.11.80 times
D.33.12 times
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