The following information pertains to questions 41 to 44.

Selected data from RCL Inc.s financial statements are presented below (in thousands):

December 31

Year 10 Year 9

Cash $ 87 $ 111

Marketable securities 40 50

Accounts receivable (net) 180 190

Merchandise inventory 432 366

Tangible fixed assets (net) 640 800

Total assets 1,379 1,517

Current liabilities 455 517

Total liabilities 695 837

Common shares 500 500

Retained earnings 184 180

Net sales (100% on account) $1,800 $1,900

Cost of goods sold 1,080 1,045

Operating expenses excluding amortization 468 412

Amortization 160 200

Interest expense 19 26

Income tax 29 87

Net income 44 130

Common dividends declared and paid 40 60

41. What is the quick ratio for Year 10?

a) 3.03

b) 0.44

c) 1.62

d) 1.98

e) 0.67

42. What is the merchandise inventory turnover in days (using 365 days in a year) for RCL

Inc. Corporation in Year 10?

a) 74 days

b) 135 days

c) 81 days

d) 124 days

e) 202 days

43. What is the times interest earned for Year 10?

a) 4.8 times

b) 37.9 times

c) 2.3 times

d) 16.8 times

e) 3.3 times

44. What is the total debt-to-equity ratio for Year 10?

a) 1.39

b) 1.02

c) 0.35

d) 0.50

e) 3.78