Question Completion QUESTION 25 Use the following information to answer Questions 4.25, 4.26 & 4.26. The financial statements of Sawyer Corporation are reproduced below: Sawyer Corporation Statement of Financial Position As of November 30 (in thousands) Year 2 Year 1 Cash.. $ 3,000 $2,000 Short-term marketable securities 1,000 1,000 Accounts receivable (niet)... 14,000 11,000 Merchandise inventory. 24,000 16,000 Total current assets. 42,000 30,000 Property, plant, and equipment (net). 68,000 60,000 Long-term investments. 10,000 10,000 Total assets. $120,000 $100,000 Accounts payable Wages payable Total current liabilities. Bonds payable, 10%..... Total liabilities Common stock, no par, 10,000,000 shares $ 5,000 $4,000 1,000 1.000 6,000 5,000 20.000 20,000 26,000 25,000 25,000 25,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. VVS Topcity, , \ Long-term investments Total assets 10.000 10.000 $120,000 $100,000 *** SW Accounts payable Wages payable Total current liabilities Bonds payable, 10%. Total liabilities Common stock, no par, 10,000,000 shares Retained earnings.. Total stockholders' equity. Total liabilities and stockholders' equity. $ 5,000 $ 4,000 1,000 1,000 6,000 5,000 20.000 20.000 26,000 25,000 25,000 25,000 69,000 50,000 94,000 75,000 $120,000 $100.000 Sawyer Corporation Statement of Income For the Year Ended November 30, Year 2 (in thousands) Sales (all on credit) $200,000 Cost of goods sold 120,000 Gross margin....... 80,000 Operating expenses 38,000 Net operating income 42,000 Interest expense 2,000 Net income before income taxes 40,000 Income tax expense. 15,000 Net income......... $ 25,000 Sawyer Corporation's current ratio as of November 30, Year 2, is closest to: O a. 7 O b. 6 OS Od3 QUESTION 26 Using the information from Question 4.25: Sawyer Corporation's acid-test (quick) ratio as of November 30, Year 2. Es closest to O a. 2.8 Ob.3 c. 7 O d. 4 QUESTION 27 Using the information from Question 4.25: Sawyer Corporation's accounts receivable turnover for the year ended November 30, Year 2, is closest to: a. 18.2 O b. 14,3 OC 9.6 d. 16.0 QUESTION 28 Which of the following ratios would a long-term creditor calculate in order to measure the ability of a company to pay the interest it owes? O a. Times interest earned Ob. Accounts receivable turnover Oc Current ratio O d. Gross margin