81.A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. Theamount of working capital immediately after payment is
a. $845,000
b. $595,000
c. $720,000
d. $125,000
82.Which of the following measures a company’s ability to pay its current liabilities?
a.earnings per share
b.inventory turnover
c.current ratio
d.number of times interest charges earned
83.Which of the following is
notincluded in the computation of the quick ratio?
a.inventory
b.marketable securities
c.accounts receivable
d.cash
84.The numerator in calculating the accounts receivable turnover is
a.total assets
b.sales
c.accounts receivable at year-end
d.average accounts receivable
85.Based on the following data, what is the accounts receivable turnover?
Sales on account during year
|
$700,000
|
Cost of merchandise sold during year
|
270,000
|
Accounts receivable, beginning of year
|
45,000
|
Accounts receivable, end of year
|
35,000
|
Inventory, beginning of year
|
90,000
|
Inventory, end of year
a. 17.5
|
110,000
|
b. 2.6
|
|
c. 20.0
|
|
d. 15.5
|
|
86.An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to
a.decrease
b.remain the same
c.either increase or decrease
d.increase
87.Based on the following data for the current year, what is the number of days' sales in accounts receivable?
Sales on account during year
|
$584,000
|
Cost of merchandise sold during year
|
300,000
|
Accounts receivable, beginning of year
|
45,000
|
Accounts receivable, end of year
|
35,000
|
Inventory, beginning of year
|
90,000
|
Inventory, end of year
|
110,000
|
88.Based on the following data for the current year, what is the inventory turnover?
Sales on account during year
|
$700,000
|
Cost of merchandise sold during year
|
270,000
|
Accounts receivable, beginning of year
|
45,000
|
Accounts receivable, end of year
|
35,000
|
Inventory, beginning of year
|
90,000
|
Inventory, end of year
a. 2.7
|
110,000
|
b. 9.7
|
|
c. 2.5
|
|
d. 3.0
|
|
89.Based on the following data for the current year, what is the number of days' sales in inventory?
Sales on account during year
|
$1,204,500
|
Cost of merchandise sold during year
|
657,000
|
Accounts receivable, beginning of year
|
75,000
|
Accounts receivable, end of year
|
85,000
|
Inventory, beginning of year
|
85,600
|
Inventory, end of year
a. 51.2
|
98,600
|
b. 44.4
|
|
c. 6.5
|
|
d. 7.5
|
|
90.Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and alsogives an indication of the potential ability of the business to borrow additional funds on a long-term basis?
a.ratio of fixed assets to long-term liabilities
b.ratio of net sales to assets
c.number of days' sales in receivables
d.rate earned on stockholders' equity