Use the following information to answer questions 7 10.

Green Thumb Garden Supplies reported the following information for 2017 and 2018.

20182017

Assets

Cash$ 50,000$ 45,000

Accounts receivable35,00025,000

Inventory25,00020,000

Property, plant, and equipment 240,000 210,000

Total assets$350,000$300,000

Liabilities and Shareholders Equity

Current liabilities$ 65,000$ 60,000

Non-current liabilities110,00090,000

Shareholders equitycommon 175,000 150,000

Total liabilities and shareholders equity$350,000$300,000

Income statement for 2018

Sales$95,000

Cost of goods sold 45,000

Gross profit50,000

Operating expenses 15,000

Income before income tax35,000

Income tax expense 5,000

Net income$30,000

7. What is the current ratio for 2018?

(a) 2.0

(b) 1.7

(c) 1.6

(d) 0.6

8. What is the receivables turnover ratio for 2018?

(a) 2.7 times

(b) 2.0 times

(c) 3.2 times

(d) 3.8 times

9. What is the inventory turnover ratio for 2018?

(a) 2.3 times

(b) 2.0 times

(c) 1.8 times

(d) 0.5 times

10. What is the return on assets for 2018?

(a) 27.1%

(b) 10.0%

(c) 9.2%

(d) 8.6%

11) You are supposed to receive $2,000 five years from now. At an interest rate of 6%, what is the $2,000 worth today.

A. $1,491.97

B. $1,492.43

C. $1,494.52

D. $1,497.91

E. $1,499.01

12) You just received $278,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 38 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 9.5% rather than just 9.0%?

A. $794,014

B. $1,396,036

C. $1,611,408

D. $1,818,342

E. $2,033,333

13) What is the future value of $7,540 invested at 6.5% interest for seven years?

A. $11,717.06

B. $10,330.45

C. $11,001.93

D. $11,337.37

E. $11,041.26

14) Jessica invests $3,000 in an account that pays 5% simple interest. How much more could she have earned over a 7-year period if the interest had compounded annually?

A. $122.20

B. $221.30

C. $129.30

D. $171.30

E. $147.80

15) You just won the lottery and want to put some money away for your child's college education. College will cost $65,000 in 18 years. You can earn 8% compounded annually. How much do you need to invest today?

A. $11,763.07

B. $13,690.82

C. $16,266.19

D. $9,828.18

E. $15,258.18