The following information applies to Questions 1-7: Cameron\'s Accounts 20x9 20x

Question

The following information applies to Questions 1-7: Cameron's Accounts 20x9 20x8 Cash and cash equivalents 5,550 $ 5,094 Net receivables Merchandise inventory Prepaid expenses Total current assets Other assets Total assets Total current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Net sales revenue Cost of goods sold Operating expenses Operating income Interest expense ?,813 1,611 1,324 1,500 1,709 2,120 10,325 18,50015,737 $ 28,896 26,062 S 7,230 S 8,467 3,792 4,363 9,440 S 28,896 S 26,062 10,396 4,798 6,568 10,300 $ 25,000 7,055 7,064 6,821 210 2,563 Income tax expense Net income $ 8,107

Explanation / Answer

1)correct option is "d"

Decrease in merchandise inventory = [1324-1500]/1500 = - 11.7%

2)correct optionis " B"

current liabilities is 2% of total asset     [7230/28896=25%]

3)correct option is " D"

cost of goods sold = 7055/25000 = 28.2% of sales

4)correct option is " D" -1.4

current ratio =current asset /current liabilities

   = 10396/7230

= 1.44

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