Company Abel has sales of $366,000 and cost of goods sold of $233,000. Its annual average inventory balance is $24,332. What is its inventory turnover in terms of number of turns?

Select one:

a. 1.57 turns

b. 9.57 turns

c. 15.04 turns

d. 7.03 turns

Question 2

Not yet answered

Marked out of 1.00

Flag question

Question text

What is its inventory turnover in terms of days?

Select one:

a. 15 days

b. 30 days

c. 28 days

d. 38 days

Question 3

Not yet answered

Marked out of 1.00

Flag question

Question text

Company Baker has sales of $375,000 and cost of goods sold of $302,000. Its annual average inventory balance is $26,702. What is its inventory turnover in terms of number of turns?

Select one:

a. 15.31 turns

b. 18.71 turns

c. 12.41 turns

d. 11.31 turns

Question 4

Not yet answered

Marked out of 1.00

Flag question

Question text

What is its inventory turnover in terms of days?

Select one:

a. 45 days

b. 15 days

c. 22 days

d. 32 days

Question 5

Not yet answered

Marked out of 1.00

Flag question

Question text

Which company has the favorable inventory turnover experience?

Select one:

a. Abel

b. Baker

Question 6

Not yet answered

Marked out of 1.00

Flag question

Question text

If the average inventory value decreases and all other balances and values remain the same, the resulting turnover inventory number (in terms of number of turns) will:

Select one:

a. increase

b. stay the same

c. decrease

d. cannot be determined.

Question 7

Not yet answered

Marked out of 1.00

Flag question

Question text

If the average inventory value decreases and all other balances and values remain the same, the resulting number of inventory turnover days will:

Select one:

a. increase

b. stay the same

c. decrease

d. cannot be determined

Question 8

Not yet answered

Marked out of 1.00

Flag question

Question text

If the dollar value of sales increases but all other balances and values remain the same, the resulting number of inventory turnover days will:

Select one:

a. increase

b. stay the same

c. decrease

d. cannot be determined

Question 9

Not yet answered

Marked out of 1.00

Flag question

Question text

Company Abel has total sales of $375,000, of which, $125,000 represent cash sales. Its annual average accounts receivable balance is $42,000. What is its accounts receivable turnover in terms of number of turns?

9. Question Text: Company Abel has total sales of $375,000, of which, $125,000 represent cash sales. Its annual average accounts receivable balance is $42,000. What is its accounts receivable turnover in terms of number of turns? a. =5.95 turns b. 2.97 turns c. 8.92 turns d. 3.0 turns

Select one:

a. 5.95 turns

b. 2.97 turns

c. 8.92 turns

d. 3.0 turns

Question 10

Not yet answered

Marked out of 1.00

Flag question

Question text

What is its accounts receivable turnover in terms of days?

Select one:

a. 21 days

b. 31 days

c. 61 days

d. 51 days

Question 11

Not yet answered

Marked out of 1.00

Flag question

Question text

Company Baker has total sales of $360,000, of which, $60,000 represent cash sales. Its annual average accounts receivable balance is $30,000. What is its accounts receivable turnover in terms of number of turns?

Select one:

a. 10 turns

b. 15 turns

c. 36 turns

d. 45 turns

Question 12

Not yet answered

Marked out of 1.00

Flag question

Question text

What is its accounts receivable turnover in terms of days?

Select one:

a. 10 days

b. 15 days

c. 36 days

d. 45 days

Question 13

Not yet answered

Marked out of 1.00

Flag question

Question text

Which company has the favorable accounts receivable turnover experience?

Select one:

a. Abel

b. Baker

Question 14

Not yet answered

Marked out of 1.00

Flag question

Question text

If the value of the average receivable balance decreases, but all other balances and values remain the same, the resulting number of receivable turnover days will:

Select one:

a. increase

b. remain the same

c. decrease

d. cannot be determined

Question 15

Not yet answered

Marked out of 1.00

Flag question

Question text

The present value of $100 for one year, in the future, at 6% is:

Select one:

a. $90.33

b. $92.33

c. $94.33

d. $99.94

Question 16

Not yet answered

Marked out of 1.00

Flag question

Question text

The present value of $100 for one year, in the future, at 3% is:

Select one:

a. $97.09

b. $94.09

c. $95.09

d. $99.97

Question 17

Not yet answered

Marked out of 1.00

Flag question

Question text

The following account values are from Baker Companys balance sheet: Cash $10,000 Accounts Receivable $5,000 Inventory $25,000 Equipment $75,000 Buildings $100,000 Short-term Liabilities $15,000 Long-term Liabilities $50,000 What is Bakers current ratio?

Select one:

a. 1.70

b. 0.70

c. 0.42

d. 2.66

Question 18

Not yet answered

Marked out of 1.00

Flag question

Question text

What is Bakers quick ratio?

Select one:

a. 0.70

b. 0.42

c. 2.33

d. 1.00

Question 19

Not yet answered

Marked out of 1.00

Flag question

Question text

Another project expects gross annual cash inflow of $900 but incurring related annual expenses of $300. The initial investment for the project is $1,200. The assumed discount rate is 4% and the life of the project is 6 years.

		4%
Period	FV	FV Annuity	PV	PV Annuity
1	1.0400	1.0000	.9615	0.9615
2	1.0816	2.0400	.9246	1.8861
3	1.1249	3.1216	.8890	2.7751
4	1.1699	4.2465	.8548	3.6299
5	1.2167	5.4163	.8219	4.4518
6	1.2653	6.6330	.7903	5.2421
7	1.3159	7.8983	.7599	6.0021
8	1.3686	9.2142	.7307	6.7327
9	1.4233	10.5828	.7026	7.4353
10	1.4802	12.0061	.6756	8.1109

Select one:

a. $1,945.26

b. $1,501.05

c. $2,540.93

d. $3,629.90

Question 20

Not yet answered

Marked out of 1.00

Flag question

Question text

A friend inherits an annuity policy that provides $25,000 annually for the next 3 years. In an interest rate environment of 3%, what is the inheritance worth today?

		3%
Period	FV	FV Annuity	PV	PV Annuity
1	1.0300	1.0000	.9709	0.9709
2	1.0609	2.0300	.9426	1.9135
3	1.0927	3.0909	.9151	2.8286
4	1.1255	4.1836	.8885	3.7171
5	1.1593	5.3091	.8626	4.5797

Select one:

a. $68,632.50

b. $75,000.00

c. $70,715.00

d. $23,181.75

Question 21

Not yet answered

Marked out of 1.00

Flag question

Question text

A company has total current assets of $750,000 and long term assets of $950,000. Total current liabilities equal $350,000 and total long-term liabilities are $300,000. The company has 200,000 shares of $2 par common stock outstanding. The common stock has a market value of $20 per share. What is the companys book value?

Select one:

a. $400,000

b. $4,000,000

c. $1,050,000

d. $1,700,000

Question 22

Not yet answered

Marked out of 1.00

Flag question

Question text

A company has total current assets of $750,000 and long term assets of $950,000. Total current liabilities equal $350,000 and total long-term liabilities are $300,000. The company has 200,000 shares of $2 par common stock outstanding. The common stock has a market value of $20 per share. What is the companys market capitalization?

Select one:

a. $400,000

b. $4,000,000

c. $1,050,000

d. $1,700,000

Question 23

Not yet answered

Marked out of 1.00

Flag question

Question text

You are promised $450 one year from now. Assuming prevailing interest rates are at 4%, what is that promise worth today?

Select one:

a. $430.00

b. $432.69

c. $96.15

d. $450.00

Question 24

Not yet answered

Marked out of 1.00

Flag question

Question text

You are given $175 today and you go to the bank and deposit it in an account that provides 5% interest per year. What do you expect the balance to be one year from now?

Select one:

a. $175.00

b. $166.00

c. $175.83

d. $183.75

Question 25

Not yet answered

Marked out of 1.00

Flag question

Question text

What do you expect the balance to be two years from now?

Select one:

a. $192.94

b. $194.92

c. $192.50

d. $195.20