51) The net sales for James, Inc. were $4,000,000; net income was $510,000; and gross profit was $1,300,000. The return on sales ratio would be:

A) 12.75%.

B) 32.50%.

C) 45.25%.

D) 39.23%.

52) A company has cash of $215,000; short-term investments of $35,000; net receivables of $75,000; and inventory of $150,000. Current liabilities total $90,000. The current ratio is:

A) 5.28:1.

B) 4.44:1.

C) 3.61:1.

D) 4.89:1.

 

53) Rick’s Cars had a beginning account receivables balance of $325,000. The ending account receivables balance was $300,000. Net credit sales for the company were $4,200,000. The accounts receivable turnover for Rick’s Cars is:

A) 12.92.

B) 14.

C) 13.44.

D) None of the above are correct.

 

54) The liabilities of a company at the end of the year are $500,000 and the total stockholders’ equity at the end of the year is $1,500,000. The debt to stockholders’ equity ratio is:

A) 0.50 to 1.

B) 0.33 to 1.

C) 0.67 to 1.

D) 3.00 to 1.

 

55) Tom’s Toys has a cash balance of $80,000; temporary investments of $20,000; net receivables of $60,000; and inventory of $450,000. Tom’s current liabilities total $200,000. His quick (acid test) ratio is:

A) 3.05 to 1.

B) 2.25 to 1.

C) 0.80 to 1.

D) 0.54 to 1.

56) Merchandise inventory turnover measures the relationship between

A) cost of goods sold and merchandise inventory.

B) expenses and merchandise inventory.

C) merchandise inventory and current liabilities.

D) assets and current liabilities.

 

57) Topiary’s Unlimited has a cost of goods sold of $1,600,000. The beginning merchandise inventory was $195,000 and its ending merchandise inventory is $205,000. Topiary’s merchandise inventory turnover ratio is:

A) 8.21 times.

B) 7.80 times.

C) 8.00 times.

D) None of the above are correct.

 

58) Topiary’s Unlimited has a cost of goods sold of $1,900,000. The beginning merchandise inventory was $125,000 and its ending merchandise inventory is $133,000. Topiary’s merchandise inventory turnover ratio is:

A) 65.5 times.

B) 33.8 times.

C) 14.7 times.

D) 0.1 times.

 

59) Isaiah Company has net income before interest and taxes of $720,000; beginning total assets of $2,100,000; and ending total assets of $2,300,000. Isaiah’s return on total assets is:

A) 32.7%.

B) 11.2%.

C) 3.1%.

D) 31.3%.

60) The income before taxes and interest expense of Barry Builders for the year just ended is $230,000. Their interest expense is $20,000 and their income taxes are $80,500. The number of times interest would be earned is:

A) 22.0.

B) 10.5.

C) 11.5.

D) 0.5.

 

 

 



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