Richard Company

Richard Company manufactures computer technology devices. Selected financial data for Richard is presented below; use the information to answer the following questions:

Current Assets	Dec. 31, Year 1	Dec. 31, Year 0
Cash and short-term investments	$1,267,038	$ 616,604
Accounts Receivable (net)	490,816	665,828
Inventories	338,599	487,505
Prepaid Expenses and other current assets	292,511	291,915
Total Current Assets	$2,388,964	$2,061,852
Current Liabilities
Short-term borrowings	$ 25,190	$ 38,108
Current portion of long-term debt	182,295	210,090
Accounts payable	296,307	334,247
Accrued liabilities	941,912	743,999
Income taxes payable	203,049	239,793
Total Current Liabilities	1,648,753	1,566,237

Selected Income Statement Data - for the year ending December 31, Year 1:
Net Sales	$4,885,340
Cost of Goods Sold	2,542,353
Operating Income	733,541
Net Income	230,101

Selected Statement of Cash Flow Data - for the year ending December 31, Year 1:
Cash Flows from Operations	$1,156,084

Refer to the information for Richard Company. Richard's current ratio in Year 1 was:

	a.	1
	b.	1.07
	c.	.69
	d.	1.45

3 points

QUESTION 21

Refer to the information for Richard Company. Richard's Operating Cash Flow to Current Liabilities ratio in Year 1 was:

	a.	.70
	b.	1.39
	c.	1.00
	d.	.72

3 points

QUESTION 22

Refer to the information for Richard Company. Richard's days accounts payable outstanding at the end of Year 1 is:

	a.	50 days
	b.	45.51 days
	c.	48.09 days
	d.	38.19 days