1. The net income for a company was $200,000 last year & is $180,000 this year. Horizontal analysis reflects the percent of increase or decrease was ___%.
2. The net sales for a company were $2,500,000; gross profit was $500,000; and net income was $230,000. The net income to net sales ratio would be ___%.
3. A company has cash $75,000; temp. investments $20,000; net receivables $600,000. The quick or acid-test ratio is
a. .54 to 1
b. .58 to 1
c. 1.74 to 1
d. 1.84 to 1
4. Using Question 3, what is the current ratio?
a. .54 to 1
b. .58 to 1
c. 1.74 to 1
d. 1.86 to 1
5. A company has net sales on account of $1,500,000. net accounts receivable at the beginning of the year are $600,000 & net accounts receivable at the end of the year are $650,000. The accounts receivable turnover is ___.
a. .42
b. .53
c. 1.2
d. 2.4
6. Using Question 5, what is the merchandise inventory turnover for the year?
a. 1.7
b. 7.4
c. 57.5
d. 65.5
