Use the following financial statements to answer multiple choice questions 1 - 10. Round answers to 2 decimal places where needed.

AZTEC CORPORATION - BALANCE SHEETS

12/31/16 12/31/15

Cash $ 19,000 $ 20,000

Accts. Receivable 46,000 34,000

Inventory 122,000 96,000

Equipment (net of depreciation) 113,000 110,000

Total Assets $300,000 $260,000

Accts. Payable $ 75,000 $ 50,000

Long-Term Note Payable 0 15,000

Common Stock, $10 par 100,000 100,000

Retained Earnings 125,000 95,000

Total Liab & Owners Equity $300,000 $260,000

AZTEC CORP - INCOME STATEMENTS ADDITIONAL INFORMATION:

FOR THE YEARS ENDED DEC. 31

2016 2015 1. Aztec has no preferred stock.

Sales $365,000 $360,000 2. All sales are on credit.

Cost of Goods Sold 220,000 216,000 3. The market price of Aztecs common

Gross Profit $145,000 $144,000 stock was $23.50 on 12/31/16 and

Operating Expenses 100,000 90,000 $20.00 on 12/31/15.

Interest Expense 13,000 12,000 4. Aztec had 10,000 shares of common Net Income $ 32,000 $ 42,000 stock issued in 2015 and 2016.

1. What is Aztec's current ratio for 2016?

a. 4.0 c. 1.0 e. 0.25

b. 2.49 d. 0.87

2. What is Aztec's days' sales uncollected for 2016?

a. 76.3 c. 40

b. 13 d. 46

3. What is Aztec's inventory turnover for 2016?

a. 3.35 c. 2.02

b. 0.50 d. 1.80

4. What is Aztec's debt ratio for 2016?

a. 4% c. 75%

b. 25% d. 100%

5. What is Aztec's times-interest-earned ratio for 2016?

a. 28.07 c. 2.46

b. 12.15 d. 3.46