Question

Biwott Company Balance Sheet As of December 31, 2021
Assets
Cash	$  60,000
Accounts Receivable	60,000
Marketable Securities	80,000
Land	20,000
Equipment (net)	160,000
Total	$ 380,000
Liabilities and Stockholders' Eqiuity
Accounts Payable	$  30,000
Taxes Pay. in 10 days	20,000
Bonds Pay. in 4 yrs.	80,000
Common Stock	125,000
Retained Earnings	125,000
Total	$ 380,000

What amount of quick assets did Biwott Company hold at December 31, 2021?

	a.	$120,000
	b.	$140,000
	c.	$200,000
	d.	$220,000

Cook Corporation Balance Sheet As of December 31, 2023
Assets
Cash	$  30,000
Accounts Receivable	120,000
Inventory	90,000
Fixed Assets (net)	550,000
Total	$ 790,000
Liabilities and Stockholders' Eqiuity
Accounts Payable	$  60,000
Bonds Pay. in 12 yrs.	210,000
Common Stock	170,000
Retained Earnings	350,000
Total	$ 790,000

Cook held $92,500 of merchandise in inventory at the beginning of the year, and the cost of goods sold for the year equalled $730,000

What was the company's inventory turnover?

	a.	3
	b.	8
	c.	4
	d.	6

. Blue Corporation reports the following items in the stockholders’ equity section of its Balance Sheet:

Common Stock - at Par	$ 300,000
Paid-in Capital in Excess of Par - Common	$ 122,000
Retained Earnings	$  30,000
Treasury Stock	$  46,000

What is Blue Corporation‘s total stockholders’ equity?

	a.	$452,000
	b.	$468,000
	c.	$406,000
	d.	$422,000

Answer 1

Answer 1. c. $200,000.

Explanation:

Quick assets did Biwott Company hold on December 31, 2021

= Cash + Accounts Receivable + Marketable Securities  

= $60,000 + $60,000 + $80,000 = $200,000.

Answer 2. b. 8

Explanation:

Average inventory = ($92,500 + 90,000) / 2 = $91,250.

Company's inventory turnover = Cost of goods sold / Average inventory

= $730,000 / $91,250 = 8.

Answer 3. c. $406,000.

Explanation:

Blue Corporation‘s total stockholders’ equity

= Common Stock (Par) + Paid-in Capital in Excess of Par + Retained Earnings - Treasury Stock

= $300,000 + $122,000 + $30,000 - $46,000 = $406,000.