8) If ABC Co. sells on credit terms of net 30, and it's customers always pay exactly on the due date, what would be ABC's accounts receivable turnover? a. 30 times b. 15 times c. 12 times d. 6 times

9) What are ABC's current liabilities for 2019? a. $190,000 b. $254,000 c. $490,000 d. $160,000

10) If the times interest earned ratio for a company decreased from 8 times to 5 times, which of the following statements is true? a. This would be viewed positively by creditors. b. This would be viewed negatively by creditors. c. If the company's debt levels remained stable, it's likely the companies net income increased. d. None of the above statements are true.

ABC Company Partial Balance Sheet December 31, 2019 December 31, 2018 Assets in no particular order): Cash Property, Plant and Equipment Accounts Receivable Inventory Prepaid Rent Long-term Notes Receivable Temporary Investments 100,000 540,000 120,000 300,000 8,000 120,000 50,000 $120,000 520,000 140,000 260,000 7,500 120,000 60,000 Liabilities (in no particular order): Accounts Payable Short-term Notes Payable Wages Payable Long-term Debt Income Tax Payable 100,000 50,000 10,000 300,000 30,000 210,000 10,000 8,500 280,000 25,500 Income Statement For the Year Ended December 31, 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before tax Income tax Net income 1,000,000 600,000 400,000 120,000 60,000 220,000 11,000 209,000 62,700 146,300