# Acct 346 Essay

742 Words3 Pages
INSTRUCTIONS: CLICK ON THE TEXT BOX TO THE LEFT OF THE QUESTION NUMBER AND ENTER THE LETTER THAT REPRESENTS YOUR ANSWER. SHOW YOUR CALCULATIONS IN THE TEXT BOXES BY CLICKING ON THE BOX. 1. Jada Co.’s net sales are \$1,000,000; average inventory \$230,000; cost of goods sold \$700,000; accounts receivable \$25,000; and total assets \$750,000. The days’ sales in inventory are: (round to decimals in all calculations) A. 120.07 B. 83.947 C. 391.21 D. 273.82 2. Brett Inc. had total assets of \$800,000; average inventory of \$200,000; cost of goods sold of \$750,000; and net sales of \$1,000,000. Their inventory turnover was: A. 4.00 B. 3.75 C. 5.00 D. 4.50 3. Which of the following ratios is a stringent test of a company’s liquidity? A. current ratio. B. working capital. C. debt-to-equity ratio. D. quick ratio. 4. Which of the following includes operating income in the ratio’s numerator? A. Times interest earned B. Debt-to-equity ratio C. Acid-test ratio D. Gross margin percentage Use the following information for the next 2 questions. Tedi Co. had net sales of \$1,000,000; inventory of \$230,000; cost of goods sold of \$700,000; average accounts receivable of \$25,000; and average total assets of \$750,000. There were no returns of sales. 5. The company’s accounts receivable turnover is: A. 30 B. 9.2 C. 28 D. 40 6. The company’s asset turnover is: A. 0.933 B. 3.922 C. 1.333 D. 3.261 7. Which of the following is a measure of a company’s short-term debt paying ability? A. Debt-to-equity ratio B. Current ratio C. Accounts receivable turnover D. Asset turnover 8. The higher this ratio, the riskier the company becomes in the eyes of creditors. Which one is it? A. Current ratio B. Acid-test ratio C. Return on total assets D. Debt-to-equity ratio 9. Which of the following