Question :
111. Use the following information to answer Questions 24, 25, and : 1246680
111. Use the following information to answer Questions 24, 25, and 26.
Accounts payable
$ 30,000
Accounts receivable
65,000
Accrued liabilities
7,000
Cash
20,000
Intangible assets
40,000
Inventory
72,000
Long-term investments
100,000
Long-term liabilities
75,000
Marketable securities
36,000
Notes payable (short-term)
20,000
Property, plant, and equipment
625,000
Prepaid expenses
2,000
Based on the above data, what is the quick ratio, rounded to one decimal point? A. 2.4B. 3.4C. 2.1D. 1.5
112. A company with working capital of $500,000 and a current ratio of 2.5 pays a $85,000 short-term liability. The amount of working capital immediately after payment is A. $585,000B. $415,000C. $500,000D. $85,000
113. Which of the following is a measure of the liquid position of a corporation? A. earnings per shareB. inventory turnoverC. current ratioD. number of times interest charges earned
114. Which of the following is not included in the computation of the quick ratio? A. inventoryB. marketable securitiesC. accounts receivableD. cash
115. The numerator used to calculate accounts receivable turnover is A. total salesB. net credit salesC. accounts receivable at year-endD. average accounts receivable
116. Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during year
$500,000
Cost of merchandise sold during year
300,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
A. 12.5B. 11.1C. 10.0D. 14.3
117. An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to A. decreaseB. remain the sameC. either increase or decreaseD. increase
118. Based on the following data for the current year, what is the number of days’ sales in accounts receivable?
Net sales on account during year
$584,000
Cost of merchandise sold during year
300,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
A. 7.3B. 2.5C. 14.6D. 25
119. Based on the following data for the current year, what is the inventory turnover?
Net sales on account during year
$500,000
Cost of merchandise sold during year
330,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
A. 3.3B. 8.3C. 3.7D. 3.0
120. If inventory is excessive, which item below is not true? A. Solvency is reduced. B. The quick ratio is not affected.C. Ordering costs increase.D. Storage costs increase.
