University Of Arizona ATMO 005 Quiz 16 1)Which of the following is a liquidity ratio? Earnings per share Ratio of Net Sales to Assets Rate Earned on Total Assets Inventory turnover All of the above are liquidity ratios     Information for the Glen Company and the Clarke Company appears below               Clarke   Glen                       Year   Year   Year   Year       2              1              2              1         Revenue   12,000   10,000   31,000   27,000                                           Cash   700         400         300         900                       Accounts     receivable       500         400         300         200                         Inventory   3,300     3,000     1,700     1,500                   2

University Of Arizona

ATMO 005

Quiz 16

1)Which of the following is a liquidity ratio?

Earnings per share

Ratio of Net Sales to Assets Rate Earned on Total Assets

Inventory turnover

All of the above are liquidity ratios

 

 

Information for the Glen Company and the Clarke Company appears below

 

 

 

 

 

 

 

Clarke   Glen

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

 

 

2              1              2              1

 

 

 

 

Revenue

 

12,000   10,000   31,000   27,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

700         400         300         900

 

 

 

 

 

 

 

 

 

 

 

Accounts

 

 

receivable

 

 

 

500         400         300         200

 

 

 

 

 

 

 

 

 

 

 

 

Inventory

 

3,300     3,000     1,700     1,500

 

 

 

 

 

 

 

 

 

2. Based on a ratio analysis, which company better manages its accounts receivable?

Glen (based on days sales in A/R of 2.9 versus 13.7)

Clarke

Neither is good Both are the same

 

 

3. The Marketplace balanced scorecard contains all of the following measures except Market performance

Human resource management

Manufacturing productivity

Customer satisfaction

Asset management

 

 

Below are the comparative days’ sales in inventory (DSI) ratios of two companies:

 

 

 

 

Year

 

Year

 

Year

 

 

3              2              1

 

 

ABC Company

1.64        1.25        1.21

 

 

XYZ Company

1.75        1.81        1.92

 

 

Based on this information

4. ABC’s current DSI is better than XYZ’s and is improving ABC’s current DSI is worse than XYZ’s, but is improving XYZ’s current DSI is better than ABC’s, but is declining

 

 

Information for the Bailey Company appears below

 

 

 

 

 

 

 

Year       Year

 

 

2              1

 

 

 

 

Cash

 

4,200     2,900

 

 

 

 

 

 

 

 

 

 

 

Accounts

 

 

receivable

 

 

 

16,800   12,000

 

 

 

 

 

Inventory

 

29,000   20,000

 

 

 

 

 

 

 

 

 

 

Equipment

 

46,500   33,000

 

 

 

 

 

Accounts

 

 

payable

 

 

 

8,900     7,000

 

 

 

 

 

 

Notes

 

 

payable

 

 

 

10,000   6,100

 

 

 

 

 

Equity

 

77,600   54,800

 

 

 

5. What is the company’s current ratio for year 2? Round your answer to two decimal places.