PART 1

Which of the following isnota communication by a company's management that may help alleviate investors and creditors concerns of the company's financial statements?

A. News articles

B. Notes to their financial statements

C. Assessment of vendors and customers

D. Press releases

PART 2

Cramer Cooling Company reported the following results for the year just ended:

Cash $50,000

Accounts receivable 45,000

Prepaid insurance 10,000

Inventory 51,300

Cramer Cooling's acid-test ratio is 1.25. How much are the company's current liabilities?

A. $76,000

B. $84,000

C. $125,040

D. $117,040

PART 3

Planter Zone's working capital is $32,500 and its current assets are $85,100. How much is the company's current ratio?

A. 0.72

B. 1.62

C. 2.62

D. 1.38

PART 4

Seekers Limited reported the following results for the year just ended:

Cash $ 30,000

Accounts receivable 90,000

Inventory 150,000

The company's quick ratio was 0.90 for the year. How much are the company's current liabilities?

A. $120,000

B. $133,333

C. $266,667

D. $108,000

PART 5

Kerwin Holdings has total assets of $450,000 and shareholders' equity of $120,000, of which $45,000 of the equity is common stock. How much is the company's debt-to-equity ratio?

A. 3.75

B. 2.75

C. 6.00

D. 4.40