Items (a) through (d) are based on the following information:

Required
Answer the following multiple-choice questions:
a. Sharkey's acid-test ratio as of December 31, 2009, is
1. 0.63.
2. 0.70.
3. 0.89.
4. 0.99.
b. Sharkey's receivables turnover for 2009 is
1. 8 times.
2. 6 times.
3. 12 times.
4. 14 times.
c. Sharkey's inventory turnover for 2009 is
1. 11.45 times.
2. 10.50 times.
3. 9.85 times.
4. 8.45 times.
d. Sharkey's current ratio at December 31, 2009, is
1. 1.40.
2. 2.60.
3. 1.90.
4. 1.78.
e. If current assets exceed current liabilities, payments to creditors made on the last day of the year will
1. Decrease current ratio.
2. Increase current ratio.
3. Decrease working capital.
4. Increase workingcapital.

Transcribed Image Text:

SHARKEY CORPORATION Selected Financial Data As of December 31, 2009 2008 Cash Marketable securities Accounts receivable Inventory Net property, plant, and equipment Accounts payable Short-term notes payable Cash sales Credit sales Cost of goods sold $ 8,000 32,000 40,000 80,000 240,000 60,000 30,000 1,500,000 600,000 1,260,000 60,000 8,000 110,000 140,000 280,000 100,000 50,000 1,400,000 900,000 1,403,000