1. SQC Inc. had sales of $3,000,000, cost of merchandise sold at $2,100,000, an average

inventory of $140,000. What is SQC Inc.'s days' sales in inventory? (Round the answer

to the nearest whole number.)

a. 24 days

b. 17 days

c. 15 days

d. 30 days

2. Computer equipment was acquired at the beginning of the year at a cost of $56,000 with

an estimated residual value of $5,000, and an estimated useful life of 5 years.

Determine the second year's depreciation expense using the straight-line method.

a. $10,200

b. $22,400

c. $11,200

d. $12,200

3. Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company

decides to buy 20% of its shares for $15 per share, the total stockholders' equity will:

a. increase by $600,000

b. increase by $750,000

c. decrease by $150,000

d. decrease by $120,000