Balance Sheet

December 31, 2018

Cash $ 40,000

Marketable Securities 60,000

Accounts Receivable 100,000

Inventory 200,000

Long term receivables 70,000

Property, plant & equipment 130,000

Total Assets: $ 600,000

Current Liabilities $ 200,000

Long term Liabilities 120,000

Stockholders Equity 280,000

Total Liabilities & Stockholders Equity $ 600,000

Big Billy Corporation

Income Statement

For the Year Ended December 31, 2019

Net Sales $ 400,000

Cost of Goods Sold 240,000

Gross Margin $ 160,000

Operating Expenses 40,000

Income before Income Taxes $ 120,000

Income Tax Expense 30,000

Net Income $ 90,000

Based upon the Balance Sheet and Income Statement, please answer the following: Assume the balance sheet reflects the average for the year.

What is the current ratio for this corporation? Round to two decimal places.

	.66 times
	1.50 times
	1.70 times
	2.00 times

What is the receivable turnover for this corporation? Round to one decimal.

	4.0 times
	3.0 times
	2.4 times
	0.9 times

What is the inventory turnover for this corporation? Round to one decimal.

	1.2 times
	1.6 times
	2.4 times
	4.0 times

What is the return on assets for this corporation? Round to one decimal.

	37.5 %
	26.7%
	20.0%
	15.0%