08 Oct What is inventory turnover?

Managerial Accounting

Question 1Given the following information:

Cost of goods sold:  $900,000

Beginning Inventory: $140,000

Ending Inventory:  $160,000

What is inventory turnover?

 

Question 2Given the following information:

 

Net income:  $150,000

 

Income tax expense:  $60,000

 

Interest expense:  $50,000

 

What is the times interest earned rounded to 1 decimal point?

 

Question 3Given the following information:

 

Current liabilities:  $140,000

 

Long Term debt:  $400,000

 

Total assets:  $1,200,000

 

What is the debt to total assets ratio?

 

Question 4Given the following information:

 

Net credit sales:  $1,330,000

 

Beginning A/R:  $180,000

 

Ending A/R:  $200,000

 

What is the receivables turnover?

 

Question 5Given the following information:

 

Net income:  $150,000

 

Beginning total assets:  $1,200,000

 

Ending total assets:  $800,000

 

What is the return on assets?

 

Question 6In what category does the acid test ratio fall?

 

Liquidity

 

Profitability

 

Solvency

 

Question 7 In what category does the profit margin ratio fall?

 

liquidity

 

profitability

 

solvency

 

Question 8In what category does the asset turnover ratio fall?

 

liquidity

 

profitability

 

solvency

 

Question 9 In what category does the receivables turnover ratio fall?

 

liquidity

 

profitability

 

solvency

 

Question 10 The current ratio of Fryman Company is 1.76:1.  What does that mean?