36) ABC has net sales on account of $1,200,000. The average net account receivables are $600,000. The days' sales in receivables is:
A) 439.8 days.
B) 304.0 days.
C) 182.5 days.
D) 8.7 days.
37) A company reports net income of $70,000 and net sales of $950,000. Which of the following is the rate of return on net sales?
A) 0.05
B) 0.20
C) 0.07
D) 0.66
38) A company reports total assets of $525,000 and stockholders' equity of $395,000. Which of the following is the debt ratio?
A) 0.29
B) 0.71
C) 0.55
D) 0.25
39) Zebra, Inc. has Cost of goods sold for the year of $1,900,000. The average inventory for the year is $129,000. The inventory turnover for the year is:
A) 0.1.
B) 14.7.
C) 33.8.
D) 65.5.
40) Which of the following accurately describes working capital?
A) Current assets minus inventory
B) Current assets minus current liabilities
C) Total debt minus stockholders' equity
D) Cost of goods sold divided by average inventory
41) Peartree Company provides the following data:
BALANCE SHEET
|
Dec 31, 2014
|
Dec 31, 2013
|
Cash
|
$ 21,000
|
$ 18,000
|
Accounts receivable, net
|
31,000
|
35,000
|
Inventory
|
53,000
|
25,000
|
PP&E, net
|
120,000
|
90,000
|
Total assets
|
$225,000
|
$168,000
|
|
|
|
Accounts payable
|
$4,000
|
$ 6,000
|
Accrued liabilities
|
2,000
|
1,000
|
Long-term notes payable
|
84,000
|
90,000
|
Total liabilities
|
$ 90,000
|
$ 97,000
|
|
|
|
Common stock
|
$ 30,000
|
$ 2,000
|
Retained earnings
|
113,000
|
74,000
|
Treasury stock
|
(8,000)
|
(5,000)
|
Total stockholders’ equity
|
$135,000
|
$71,000
|
Total liabilities and stockholders’equity
|
$225,000
|
$168,000
|
How much is the current ratio at year-end 2014?
A) 17.5
B) 16.1
C) 3.5
D) 0.5
42) Peartree Company provides the following data:
BALANCE SHEET
|
Dec 31, 2014
|
Dec 31, 2013
|
Cash
|
$21,000
|
$18,000
|
Accounts receivable, net
|
31,000
|
35,000
|
Inventory
|
53,000
|
25,000
|
PP&E, net
|
120,000
|
90,000
|
Total assets
|
$225,000
|
$168,000
|
Additional information:
•Net sales (all on account):$240,000
•Cost of goods sold:$110,000
How much is the days in inventory ratio for 2014?
A) 252.2
B) 176.3
C) 0.008
D) 129.4
43) Peartree Company provides the following data:
BALANCE SHEET
|
Dec 31, 2014
|
Dec 31, 2013
|
Cash
|
$21,000
|
$18,000
|
Accounts receivable, net
|
31,000
|
35,000
|
Inventory
|
53,000
|
25,000
|
PP&E, net
|
120,000
|
90,000
|
Total assets
|
$225,000
|
$168,000
|
Additional information:
•Net sales (all on account):$240,000
•Cost of goods sold:$110,000
How much is the inventory turnover for 2014?
A) 1.41
B) 2.82
C) 2.00
D) 1.65
44) Peartree Company provides the following data:
BALANCE SHEET
|
Dec 31, 2014
|
Dec 31, 2013
|
Cash
|
$21,000
|
$18,000
|
Accounts receivable, net
|
31,000
|
35,000
|
Inventory
|
53,000
|
25,000
|
PP&E, net
|
120,000
|
90,000
|
Total assets
|
$225,000
|
$168,000
|
Additional information:
•Net sales (all on account):$240,000
•Cost of goods sold:$110,000
How much is the accounts receivable turnover for 2014?
A) 7.27
B) 0.76
C) 1.55
D) 7.07
45) Peartree Company provides the following data:
BALANCE SHEET
|
Dec 31, 2014
|
Dec 31, 2013
|
Cash
|
$ 21,000
|
$ 18,000
|
Accounts receivable, net
|
31,000
|
35,000
|
Inventory
|
53,000
|
25,000
|
PP&E, net
|
120,000
|
90,000
|
Total assets
|
$225,000
|
$168,000
|
|
|
|
Accounts payable
|
$4,000
|
$ 6,000
|
Accrued liabilities
|
2,000
|
1,000
|
Long-term notes payable
|
84,000
|
90,000
|
Total liabilities
|
$ 90,000
|
$ 97,000
|
|
|
|
Common stock
|
$ 30,000
|
$ 2,000
|
Retained earnings
|
113,000
|
74,000
|
Treasury stock
|
(8,000)
|
(5,000)
|
Total stockholders’ equity
|
$135,000
|
$71,000
|
Total liabilities and stockholders’equity
|
$225,000
|
$168,000
|
What is Peartree's debt-to-equity ratio at year-end 2014?
A) 0.60
B) 0.92
C) 1.33
D) 0.67