Question : 41. Bernstein Inc.Bernstein Inc. a local retailer. The following selected information : 1291641

41. 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 inventory was held before sale in 2012? (round to two decimal places) A. 121.67 daysB. 60.83 daysC. 120.46 daysD. 240.13 days

42. Which of the following accounts should not be included in the calculation of the quick (or acid-test) ratio? A. Accounts payableB. Accounts receivableC. CashD. Inventory

43. Which of the following account balances would not be used in the calculation of the current ratio? A. InventoryB. Accounts payableC. Sales revenueD. Prepaid insurance

44. Plumeria Inc. has recently calculated the accounts receivable turnover for the current year to be 15. In prior years, the same ratio was always higher. Which of the following statements would be the best interpretation for the reason for the ratio’s change? A. The company had less cash sales in the current year than in prior years.B. The company had more sales in the current year than in prior years.C. The company had fewer accounts receivables in the current year than in prior years.D. The company took longer to collect on their accounts receivables in the current year than in prior years.

45. Torrence Inc. has recently calculated the inventory turnover for the current year to be 30. In prior years, the same ratio was always lower. Which of the following statements would be the best interpretation for the reason for the ratio’s change? A. The company had less sales in the current year than in prior years.B. The company purchased less inventory in the current year than in prior years.C. The company took fewer days to sell its inventory in the current year than in prior years.D. The company took more days to sell its inventory in the current year than in prior years.

46. As a company’s accounts receivable turnover ratio increases from one year to the next, they will find that the number of days’ sales in receivables: A. decreases.B. increases.C. stays the same.D. can not be determined.

47. As a company’s inventory turnover ratio decreases from one year to the next, they will find that the number of days inventory is held before sale: A. decreases.B. increases.C. stays the same.D. can not be determined.

48. A quick ratio ____ is often a concern for creditors and managers. A. of more than oneB. of less than oneC. equal to oneD. of more than two

49. ABC Inc. has determined that it needs to increase its current ratio in order to be in compliance with a creditor’s loan agreement. All else being equal, which of the following ways would be best for increasing their current ratio? A. Increasing long-term assetsB. Decreasing current assetsC. Decreasing current liabilitiesD. Increasing long-term liabilities

50. Which of the following types of companies would you expect to have the highest inventory turnover ratio? A. A law firmB. A construction companyC. A fine jewelry retailerD. A grocery store