1) Based on the following data, what is the quick ratio, rounded to one decimal point?

Accounts payable	$ 30,000
Accounts receivable	65,000
Accrued liabilities	7,000
Cash	20,000
Intangible assets	40,000
Inventory	72,000
Long-term investments	100,000
Long-term liabilities	75,000
Marketable securities	36,000
Notes payable (short-term)	20,000
Property, plant, and equipment	625,000
Prepaid expenses	2,000

a.	2.4
b.	3.4
c.	2.1
d.	1.5

2) A company with working capital of $400,000 and a current ratio of 2.5 pays a $75,000 short-term liability. The amount of working capital immediately after payment is

a.	$475,000
b.	$325,000
c.	$400,000
d.	$75,000

3) Based on the following data for the current year, what is the inventory turnover?

Net sales on account during year	$ 500,000
Cost of merchandise sold during year	330,000
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

a.	3.3
b.	8.3
c.	3.7
d.	3.0

4) The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year. The error was due to the accountant failing to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance.

a.	$29,000
b.	$35,000
c.	$39,000
d.	$45,000