20. Last year, HCC, Inc had Sales of $500,000, cost of goods sold of $290,000, ending accounts receivable of $75,000 and ending inventory balance of $25,000. The companys inventory turnover was closest to:

    A. 12.08 B. 11.60 C. 5.80 D. 11.15

21. Granger Corp had $180,000 in Sales on account last year and offered a 10% discount. The ending accounts receivable balance was $14,000, after bad debt expense of $5,000. The companys average collection period (DSO) was closest to:

    A. 20.3 days B. 28.4 days C. 36.5 days D. 56.8 days

22. Falmouth Corp. debt-to-equity ratio is 0.4. Current Assets are $300,000, long-term debt liabilities are $200,000 and working capital is $140,000. Total assets for the corporation must be:

    A. $600,000 B. $1,260,000 C. $800,000 D. $1,280,000

23. A company that pays cash for a used vehicle has the following affect:

    1. No change on the working capital ratio

    2. Decrease in working capital

    3. Increase in working capital

    4. Nochangeinworkingcapital

24. PKRK Corporation has budgeted cost of raw materials purchases in Feb to be $100,000, Mar will be $140,0000 and April will be $150,000. They pay for 20% of its raw materials purchases in the month of purchase, 20% in the following month and the remainder the next month. The companys accounts payable at the end of April is expected to be

    1. $118,000

    2. $264,000

    3. $204,000

    4. $90,000