Financial Ratio Questions

1. A retailer hasACCOUNTS  receivable of $70000, total current liabilities of 440000, and $50000 in case.  What is the quick ratio?

		1.4
		1.5
		2.0
		3.0

5 points   

QUESTION 2

Assume that the retailer in problem 1 has totalINVENTORY  on hand of $120,000. What is the current ratio?

		0.65
		3.00
		4.60
		6.00

5 points   

QUESTION 3

A clothing store hasACCOUNTS  receivable totaling $50,000,ACCOUNTS  payable totaling $45,000, and net sales of $50,000. What is the collection period?

		50
		183
		227
		365

5 points   

QUESTION 4

Assume that the retailer in problem 3 has accounts receivable of $15,000 and net sales of $30,000. What is the new collection period?

		91
		183
		274
		335

5 points   

QUESTION 5

A firm has total assets of $500,000, total liabilities of $350,000, and annual net sales of $1,000,000. What is the assets-to-net-sales ratio?

		5%
		7%
		30%
		50%

5 points   

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