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1) Based on the following data for the current year, what is the accounts receivable turnover?

Net sales on account during year	$ 525,500
Cost of merchandise sold during year	375,000
Accounts receivable, beginning of year	50,000
Accounts receivable, end of year	40,000
Inventory, beginning of year	110,000
Inventory, end of year	140,000

	a.	8.3
	b.	10.35
	c.	11.7
	d.	13.14

2) Based on the following data for the current year, what is the inventory turnover?

Net sales on account during year	$ 517,500
Cost of merchandise sold during year	450,000
Accounts receivable, beginning of year	50,000
Accounts receivable, end of year	40,000
Inventory, beginning of year	110,000
Inventory, end of year	140,000

	a.	3.2
	b.	3.6
	c.	4.2
	d.	7.2 3) Based on the following data, what is the quick ratio, rounded to one decimal place? Accounts payable $ 32,000 Accounts receivable 64,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 35,000 Notes payable (short-term) 25,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 a. 3.2 b. 2.1 c. 1.9 d. 1.4 4)The balance sheets at the end of each of the first two years of operations indicate the following: 2011 2010 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 125,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par--common stock 60,000 60,000 Retained earnings 325,000 210,000 If net income is $130,000 and interest expense is $40,000 for 2011, what is the rate earned on stockholders' equity for 2011 (rounded to one decimal place)? a. 12.0% b. 12.7% c. 13.2% d. 16.5%

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