Question :
31. Which ratio measures the length of time between the purchase : 1291640
31. Which ratio measures the length of time between the purchase of inventory and the eventual collection of cash from sales? A. Quick ratioB. Cash-to-cash operating cycle ratioC. Accounts receivable turnover ratioD. Inventory turnover ratio
32. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s working capital for the year 2012 is: A. $138,000.B. $ 38,000.C. $ 88,000.D. $ 78,000.
33. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s current ratio for the year 2012 is: (round to two decimal places) A. 2.73.B. 2.67.C. 1.39.D. .82.
34. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s quick (or acid-test) ratio for the year 2012 is: (round to two decimal places) A. 2.73.B. 2.67.C. 1.39.D. .82.
35. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s accounts receivable turnover ratio for the year 2012 is: (round to two decimal places) A. 3.13 times.B. 5.00 times.C. 10.00 times.D. 13.33 times.
36. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s inventory turnover ratio for the year 2012 is: (round to two decimal places) A. 1.00.B. .50.C. .56.D. 2.00.
37. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
12/31/12
12/31/12
Cash
$ 12,000
Accounts payable
$ 10,000
Accounts receivable
6,000
Salaries payable
3,000
Inventory
40,000
Taxes payable
9,000
Prepaid insurance
2,000
Total current liabilities
$ 22,000
Total current assets
$ 60,000
Notes payable
50,000
Property and equipment
80,000
Total long-term liabilities
$ 50,000
Land
20,000
Total liabilities
$ 72,000
Long-term assets
$100,000
Capital stock
60,000
Retained earnings
28,000
Total stockholders’ equity
$ 88,000
Total liabilities and
Total assets
$160,000
stockholders’ equity
$160,000
Other information:
Net income in 2012
$25,000
Inventory (12/31/11)
50,000
Credit sales in 2012
80,000
Cost of goods sold in 2012
45,000
Accounts receivable (12/31/11)
10,000
Refer to the Partin Manufacturing information above. Partin’s debt-to-equity ratio for the year 2012 is: (round to two decimal places) A. .25.B. .82.C. .45.D. .14.
38. Bernstein Inc.Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements:
Accounts receivable at 12/31/11
$ 160,000
Accounts receivable at 12/31/12
240,000
Inventory at 12/31/11
300,000
Inventory at 12/31/12
360,000
Net credit sales for 2012
3,400,000
Cost of goods sold for 2012
1,980,000
Net income for 2012
1,000,000
Refer to the Bernstein Inc. information above. What was Bernstein’s accounts receivable turnover ratio for 2012? (round to two decimal places) A. 2.50B. 5.00C. 8.50D. 17.00
39. Bernstein Inc.Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements:
Accounts receivable at 12/31/11
$ 160,000
Accounts receivable at 12/31/12
240,000
Inventory at 12/31/11
300,000
Inventory at 12/31/12
360,000
Net credit sales for 2012
3,400,000
Cost of goods sold for 2012
1,980,000
Net income for 2012
1,000,000
Refer to the Bernstein Inc. information above. What was Bernstein’s number of days sales in receivables for 2012? (round to two decimal places) A. 21.47 daysB. 42.94 daysC. 73.00 daysD. 146.00 days
40. Bernstein Inc.Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements:
Accounts receivable at 12/31/11
$ 160,000
Accounts receivable at 12/31/12
240,000
Inventory at 12/31/11
300,000
Inventory at 12/31/12
360,000
Net credit sales for 2012
3,400,000
Cost of goods sold for 2012
1,980,000
Net income for 2012
1,000,000
Refer to the Bernstein Inc. information above. What was Bernstein’s inventory turnover ratio for 2012? (round to two decimal places) A. 3.03B. 1.52C. 6.00D. 3.00
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