Question Details

A company has an account receivable turnover ratio 



1.	Toller Drug Store had net credit sales of $6,000,000 and cost of goods sold of $2,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $350,000 and $250,000, respectively. The accounts receivable turnover ratio was
a.	17.1 times.
b.	10.0 times.
c.	13.3 times.
d.	20.0 times.


	
	2.	The Grand Department Store had net credit sales of $12,000,000 and cost of goods sold of $8,000,000 for the year. The average inventory for the year amounted to $1,600,000.

The inventory turnover ratio for the year is
a.	4.0 times.
b.	7.2 times.
c.	5.0 times.
d.	2.5 times.


	

	3.	A company has an account receivable turnover ratio of 6. The average accounts receivable during the period are $350,000. What is the amount of net sales for the period?
a.	$350,000
b.	$2,100,000
c.	$58,333
d.	Cannot be determined from the information given.


	

	4.	If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio (assuming a 365 day year)?
a.	7.14 times
b.	8.69 times
c.	4.52 times
d.	None of these


	

	5.	Dartmouth Company has a quick ratio of 2.5 to 1. It has current liabilities of $40,000 and noncurrent assets of $70,000. If Dartmouth's current ratio is 3.1 to 1, its inventory and prepaid expenses must be
a.	$12,400.
b.	$24,000.
c.	$30,000.
d.	$40,000.



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help