QUESTION 9 Art Supplies, Inc. had the following asset account balances: Cash, $60,000; Short-term Investments, $120,000; Accounts Receivable, $70,000; and Inventory, $205,000. Current liabilities amounted to $325,000. What is Art Supplies current ratio?

0.77

1.40

Unable to determine

1.03

$130,000

QUESTION 10 Nutrition Inc. paid interest on a mortgage. How would this be shown on a statement of cash flows?

increase in cash from a financing activity

increase in cash from an operating activity

decrease in cash from an investing activity

decrease in cash from a financing activity

decrease in cash from an operating activity

increase in cash from an investing activity

QUESTION 11 Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and Allowances, $73,000; Cost of Goods Sold, $580,000; and Selling, General & Administrative Expenses, $120,000. How much was Quartzs gross profit?

$802,000

$102,000

$875,000

$222,000

$248,000

QUESTION 12 Torchglow, Co. had total current assets of $83,000 and total long-term assets of $615,000. Torchglow had no other assets. Torchglow has had total current liabilities of $43,000 and total long-term liabilities of $361,000. How much of Torchglows assets were financed with debt?

57.9%

42.1%

51.7%

58.7%