Assume a company provided the following balance sheet:

Current assets:				Current liabilities:
Cash	$	83,000		Accounts payable	$	90,000
Accounts receivable		50,000		Accrued liabilities		40,000
Inventory		150,000		Total current liabilities		130,000
Total current assets		283,000		Bonds payable		110,000
Property, plant & equipment, net		380,000		Total liabilities		240,000
				Stockholders equity:
				Common stock		170,000
				Retained earnings		253,000
				Total stockholders equity		423,000
Total assets	$	663,000		Total liabilities and stockholders equity	$	663,000

The debt-to-equity ratio is closest to:

Multiple Choice

• 0.57.

• 1.38.

• 0.30.

• 0.73.

• Assume a company had sales on account of $125,000 and its beginning and ending balances in accounts receivable were $12,000 and $8,000, respectively. In addition, its cost of goods sold was $100,000 and its beginning and ending inventory balances were $10,000 and $14,000, respectively. The operating cycle is closest to:

  Multiple Choice

• 69.00 days.

• 73.00 days.

• 64.00 days.

• 60.00 days.