Question
2) Excerpts from Sydner Corporation's most recent balance sheet appear below: Year 2 and 1 current assets cash $140 $160 AR $210 $230 inventory $240
2) Excerpts from Sydner Corporation's most recent balance sheet appear below: Year 2 and 1
current assets
cash $140 $160
AR $210 $230
inventory $240 $200
Prepaid Expenses $10 $10
Total current Assets $600 $600
Total current Liabilites $360 $330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The inventory turnover for Year 2 is closest to:
a)3.75
b)1.20
c)4.09
d)0.83
3) Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's inventory turnover for Year 2 is closest to:
a)3.89
b)1.04
c)3.97
d)4.05
4) All other things the same, when a company increases its inventories in anticipation of later higher sales, the accounts receivable turnover ratio for the current period increases.
True
False
8) When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.
True
False
Please show work, no calculators allowed.
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