return to the data in the preceding question a year ago receivables stood at 67 400 643808

1. Return to the data in the preceding question. What will the income statement report for this situation?

a. Nothing, because you have not received the cash yet

b. Note receivable of $8,400

c. Interest revenue of $700

d. Both b and c.

2. At year end, your company has cash of $11,600, receivables of $48,900, inventory of $37,900, and prepaid expenses totaling $5,100. Liabilities of $55,900 must be paid next year. What is your acid test ratio?

a. 1.08

b. 0.21

c. 1.76

d. Cannot be determined from the data given

3. Return to the data in the preceding question. A year ago receivables stood at $67,400, and sales for the current year totaled $807,800. How many days did it take you to collect your average level of receivables?

a. 49

b. 35

c. 29

d. 26