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16/ A company's sales in Year 1 were $440,000 and in Year 2 were $477,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

Multiple Choice

100%.

10%.

92%.

9%.

8%.

17/ Jones Corp. reported current assets of $200,000 and current liabilities of $141,500 on its most recent balance sheet. The current assets consisted of $60,200 Cash; $40,900 Accounts Receivable; and $98,900 of Inventory. The acid-test (quick) ratio is:

Multiple Choice

1.4:1.

0.71:1.

0.51:1.

1:1.

0.67:1.

18/ Refer to the following selected financial information from McCormik, LLC. Compute the company's working capital for Year 2.

	Year 2			Year 1
Cash	$	38,100		$	32,850
Short-term investments		96,000			63,000
Accounts receivable, net		88,500			82,500
Merchandise inventory		124,000			128,000
Prepaid expenses		12,700			10,300
Plant assets		391,000			341,000
Accounts payable		110,400			110,800
Net sales		714,000			679,000
Cost of goods sold		393,000			378,000

Multiple Choice

$236,200.

$124,900.

$248,900.

$152,900.

$160,400.

19/ Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test ratio for Year 2.

	Year 2			Year 1
Cash	$	38,000		$	32,750
Short-term investments		95,000			62,500
Accounts receivable, net		88,000			82,000
Merchandise inventory		123,500			127,500
Prepaid expenses		12,600			10,200
Plant assets		390,500			340,500
Accounts payable		110,900			110,300
Net sales		713,500			678,500
Cost of goods sold		392,500			377,500

Multiple Choice

1.99.

2.36.

3.22.

3.11.

2.11.

20/ Rajan Company's most recent balance sheet reported total assets of $2.08 million, total liabilities of $0.71 million, and total equity of $1.37 million. Its Debt to equity ratio is:

Multiple Choice

0.34

0.66

1.93

0.52

1.00

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