Assume a company provided the following information:

Net operating income	$	190,000
Net income before tax	$	170,000
Net income	$	119,000
Gross margin	$	680,000

The times interest earned ratio is closest to:

Multiple Choice

• 6.16.

• 9.50.

• 6.80.

• 5.16.

• Assume a company provided the following excerpts from its balance sheet and income statement as shown below:

  	Ending Balance				Beginning Balance
  Current assets	$	120,000			$	140,000
  Total assets	$	480,000			$	380,000
  Current liabilities	$	72,000			$	70,000
  Total liabilities	$	174,600			$	174,000
  Total stockholders equity	$	305,400			$	206,000

  Sales	$	1,000,000
  Cost of goods sold		600,000
  Gross margin		400,000
  Selling and administrative expenses		250,000
  Net operating income		150,000
  Interest expense		8,000
  Net income before taxes		142,000
  Income taxes		42,600
  Net income	$	99,400

  If the current assets at the end of the year include $40,000 of inventory and $5,000 of prepaid expenses, then the acid-test (quick) ratio at the end of the year is closest to:

  Multiple Choice

• 1.04.

• 1.17.

• 1.24.

• 0.96.