Hogwart Corporation's books revealed the following for 2020 and 2019: 2020 Cash $ 27,750 Accounts receivable 42,000 Inventory 72,250 Other prepaid expenses 12,500 Accounts payable 41,250 Other current payables 13,000 Shareholders' equity 100,250 Sales 525,000 Cost of goods sold 300,000 Operating expenses 70.000 Net income $155.000 2019 $ 21,250 37,500 61,600 12,500 38,000 15,000 79,850 450,750 240,750 65,000 $145.000 6. The number of days to collect the average receivable in 2020 was a) 28 days. b) 29 days. c) 30 days. d) 31 days. e None of the above Answer: | 7. The current ratio (current assets divided by current liabilities in class notes) for the 2020 year end is a) 2.85. b) 2.62 c) 1.29 d) 1.02 a None of the above Answer: Use the following information for questions 8-9. Irksome Industries' books revealed the following data for 2020: Total assets $575,000 Shareholders' equity Current liabilities 52.100 Long-term liabilities Operating Cash flow 125,500 $222,900 300,000 8. The debt/equity ratio for 2020 is a) 1.25. b) 1.34 c) 1.58 d) 2.33 e None of the above