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Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith’s acid test ratio?
a. 1.69
b. 0.54
c. 0.74
d. 1.35
Smart and Smiley Incorporated has an average collection period of 74 days. What is the accounts receivable turnover ratio for Smart and Smiley? You may use a 360-day year.
a. 4.86
b. 2.47
c. 2.66
d. 1.68
What is the present value of $1,000 to be received 10 years from today? Assume that the investment pays 8.5% and it is compounded monthly (round to the nearest $1).
a. $893
b. $3,106
c. $429
d. $833
The future value of $500 deposited into an account paying 8% annually for three years is:
a. $500.
b. $630.
c. $700.
d. $620.
Tom’s Trashbins, Inc. has fixed costs of $225,000. Tom’s trashbins sell for $45 and have a unit variable cost of $20. What is Tom’s break-even point in units?
a. 8,500
b. 8,750
c. 9,000
d. 9,250