Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company's quick ratio is 7:1 1.0:1 2.0:1 For its most recent year a company had Sales (all on credit) of $8,30,000 and Cost of

image text in transcribed
The company's quick ratio is 7:1 1.0:1 2.0:1 For its most recent year a company had Sales (all on credit) of $8,30,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its inventory was $100,000. At the end of the year its Accounts Receivable were $56,000 and its Inventory was $110,000. the inventory turnover ratio for the year was 4.8 5.0 7.9 The accounts receivable turnover ratio for the year was 6.3 7.5 10.0 On average how many days of sales were in Accounts Receivable during the year? 27 37 49 On average how many days of sales were in Inventory during the year? 14 46 73 Use the following information for items 12 and 13: A company's net income after tax was $400,000 for its most recent year. The company's income statement included Income Tax Expense of $140,000 and Interest Expense of $60,000. At the beginning of the year the company's stockholders' equity was $1,900,000 and at the end of the year it was $2,100,000. What is the interest coverage for the company? 6.7 9.0 10.0 The debt to equity ratio is computed as: (Total Liabilities Total):1 Which of the following are likely to have the reported amounts on the balance sheet close to their current value? Current Assets Long-term Assets Stockholders' Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing An Introduction With Suggested Answers To Discussion Questions

Authors: Darwin J. Casler

1st Edition

0894130978, 978-0894130977

More Books

Students also viewed these Accounting questions