Question

1. Based on the following data, what is the Current Ratio?

   Accounts payable........................	$     78,000
   Accounts receivable...................	158,000
   Payroll tax payable.....................	15,000
   Cash...........................................	49,000
   Inventory.....................................	148,000
   Goodwill......................................	160,000
   Short Term Investments................	108,000
   Notes payable (short-term)..........	65,000
   Property, plant, and equipment.....	1,800,000
   Prepaid Expenses.......................	15,000

   	a.	320,000
   	b.	2.68
   	c.	3.13
   	d.	1.99
   	e.	3.03

2. Gorsline Company presents the following data, in millions, for Year 2.

   Inventories, beginning of year	$ 5,209
   Inventories, end of year	5,409
   Cost of Goods Sold	32,918
   Net Sales	42,879

   The # of Days’ Sales in Inventory (Turnover) is:

   	a.	58.9
   	b.	45.1
   	c.	46.2
   	d.	57.0
   	e.	60.0

3. Alvarez Company had the following results:

   Long-term debt (average rate of interest is 8%)	$400,000
   Interest expense	42,000
   Net income	58,000
   Income tax	35,000
   Depreciation and amortization expense	20,000
   Operating income	126,000

   What is the Times Interest Earned ratio?

   	a.	3.0
   	b.	3.7
   	c.	3.2
   	d.	9.5
   	e.	1.4

Answer 1

If you have any doubts please comment on the answer