Non graded practice accounting assignments, I need help

1)

Most companies

a.strive for an appropriate balance between debt and equity financing.

b.try to maintain protection from creditors by keeping only a small amount of cash available.

c.are not concerned with the debt management ratios when cash flows are good.

d.agree that a current ratio of 0.75 is sufficient for business operations.

2)

Information from the financial statements are provided below:

	2020	2019
Current Liabilities	$460,000	$320,000
Long-Term Liabilities	240,000	640,000
Stockholders' Equity	840,000	1,080,000
Net Cash Flows from Operating Activities	160,000	102,000
Interest and Principal Payments	24,000	16,000
Net Sales	950,000	900,000
Net Income	180,000	144,000
Interest Expense	17,000	23,000
Income Taxes	32,000	29,000
Dividends Paid to Common Stockholders	30,000	60,000

Refer to Rio Imports. Return on equity for 2020 is

a.18.75%.

b.23.85%.

c.27.26%.

d.21.43%.

3)

Selected data from the financial statements are provided below:

	2021	2020	2019
Cash	$ 44,000	$ 28,000	$ 14,000
Accounts Receivable	84,000	32,000	114,400
Inventory	44,000	166,000	100,000
Prepaid Expenses	46,000	36,000	41,600
Total Current Assets	$218,000	$262,000	$270,000
Total Current Liabilities	$130,000	$144,000
Net Credit Sales	442,000	652,000
Cost of Goods Sold	336,000	598,000
Net Cash Flows from Operating Activities	32,000	58,000

Refer to Rainsoft Company. Assume that competitors in the industry have an average inventory turnover ratio of 20.8 times in 2021. Rainsoft's inventory turnover ratio for 2021 indicates that the company

a.is pricing its products too low.

b.may have obsolete inventory or problems with sales.

c.is selling its inventory much more quickly than the industry average.

d.has too little inventory on hand at the end of 2021.

4)

Selected data from the financial statements are provided below:

	2021	2020	2019
Cash	$ 44,000	$ 28,000	$ 14,000
Accounts Receivable	84,000	32,000	114,400
Inventory	44,000	166,000	100,000
Prepaid Expenses	46,000	36,000	41,600
Total Current Assets	$218,000	$262,000	$270,000
Total Current Liabilities	$130,000	$144,000
Net Credit Sales	442,000	652,000
Cost of Goods Sold	336,000	598,000
Net Cash Flows from Operating Activities	32,000	58,000

Refer to Rainsoft Company. Which of the following statements is true regarding the company's liquidity?

a.The quick ratio decreased from 2020 to 2021.

b.The operating cash flow ratio increased from 2020 to 2021.

c.Based on the quick ratio and cash ratio, the company appears to be in a better position to pay its current obligations at the end of 2021 compared to 2020.

d.Based on the current ratio and operating cash flow ratio, the company appears to be in a worse position to pay its current obligations at the end of 2021 compared to 2020.