Current Liabilities- $360,000.00 Quick Ratio- 2.65 Current Ratio- 4.75 Cash- $55
ID: 2649049 • Letter: C
Question
Current Liabilities- $360,000.00
Quick Ratio- 2.65
Current Ratio- 4.75
Cash- $550,000.00
# of times inventory is sold and re-stocked(inventory T/O ratio- 7.25
1) The total current asset amount is?
a-1,710,000
b- 550,000
c- 910,000
d- 190,000
2) The inventory amount is
a- 954,000
b- 756,000
c- 675,000
d- 549,000
3) What would be the accounts receivale amount?
a- 756,000
b- 954,000
c- 1,160,000
d- 404,000
4) Calculate the total annual sales of the company
a- 550,000
b- 1,710,000
c- 5,481,000
d- 435,000
5) Find the Days Sales Outstanding:
a- 26.9
b- 35.5
c- 10.0
d- 40.0
6) Which of the following will have its value dependent on the value of another underlying asset?
a- A stock
b- A Bond
c- Derivative
d- none of the above
Explanation / Answer
1. Current Asset Ratio= Current Aesst/ Current Liabilities
4.75=Current assets/360000
Current Assets=360000*4.75=1710000
The correct answer is a.
2. Quick Ratio=Cash in Hand+Inventory/Current Liabilities
2.65=550000+accounts receivable/360000
Inventory=1710000-404000-550000
b. 756000
3. accounts Receivable= Total Assets-cash-inventory
=1710000-550000-756000=404000
d. 404000
6. d derivative
A derivative is a security in which the price of the security is dependent on underlying assets.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.