1. 1. If a retail store has a current ratio of 2 1/2 to 1 and current assets of $150,000, the amount of working capital is:
5. Answer

6. 		A) $ 60,000.
   		B) $225,000.
   		C) $120,000.
   		D) $ 90,000.

Question 2

1. Use the following to answer questions 2-5:

   Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands):

   Cash....................................................................................	$25
   Accounts receivable.............................................................	45
   Inventory.............................................................................	80
   Total assets..........................................................................	400
   Current liabilities...................................................................	100
   Non current liabilities............................................................	240

   2. Refer to the above data. The quick ratio is:

   		A) 1.5 to 1.
   		B) .7 to 1.
   		C) .45 to 1.
   		D) Some other amount.

Question 3

1. 3. Refer to the above data. The current ratio is:

   		A) 5.0 to 1.
   		B) 1.5 to 1.
   		C) .7 to 1.
   		D) Some other amount.

Question 4

1. 4. Refer to the above data. Working capital amounts to:

   		A) $150,000.
   		B) $250,000.
   		C) $50,000.
   		D) Some other amount.

Question 5

1. 5. Refer to the above data. Hi-Tech's debt ratio is:

   		A) 85%.
   		B) 25%.
   		C) 60%.
   		D) Some other amount.