The following data were abstracted from the 2014 December 31, balance sheet of Andrews Company: Cash $136,000 Marketable securities 64,000. Accounts and notes receivable, net 184,000. Merchandise inventory 244,000. Prepaid expenses 12,000. Accounts and notes payable, short-term 256,000. Short-term accrued liabilities 64,000. Bonds payable, long-term 400,000. The current ratio is:

Select one:

a. 2:1.

b. 3:1.

c. 1.2:1.

d. 1:2.

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The following data were abstracted from the 2014 December 31, balance sheet of Andrews Company: Cash $136,000 Marketable securities 64,000. Accounts and notes receivable, net 184,000. Merchandise inventory 244,000. Prepaid expenses 12,000. Accounts and notes payable, short-term 256,000. Short-term accrued liabilities 64,000. Bonds payable, long-term 400,000. The acid-test ratio is:

Select one:

a. 3:1.

b. 1.2:1.

c. 2:1.

d. 1:2.

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Benson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 $720,000; Accounts receivable, December 31 960,000; Merchandise inventory, January 1 900,000; Merchandise inventory, December 31 1,020,000; Gross sales 4,800,000; Sales returns and allowances 180,000; Net sales 4,620,000; Cost of goods sold 3,360,000; Income before interest and taxes 720,000; Interest on bonds 192,000; Net income 384,000; The accounts receivable turnover is:

Select one:

a. 6.667 times per year.

b. 5.5 times per year.

c. $840,000; Accounts receivable turnover: $4,620,000/$840,000 = 5.5.

d. 5.714 times per year.

e. 5 times per year.