Assignment:
Shown below are selected data from the balance sheet of Ames Hardware, a small retail store (dollar amounts are in thousands):
Cash $20
Accounts receivable 100
Inventory 195
Total assets 450
Current liabilities 150
Non-current liabilities 120
Question 1. Refer to the above data. Ames' debt ratio is:
a. 33%
b. 300%
c. 60%
d. Some other amount
Question 2. Refer to the above data. Working capital amounts to:
a. Minus $30,000
b. $165
c. $180
d. Some other amount
Question 3. Refer to the above data. The current ratio is:
a. 0.48 to 1
b. 0.8 to 1
c. 2.1 to 1
d. Some other amount
Question 4. Refer to the above data. The quick ratio is:
a. 0.133 to 1
b. 0.8 to 1
c. 1.25 to 1
d. Some other amount
An analysis of Clifton Corporation's Investment in Marketable Securities account during 2000 disclosed the following:
Debit entries $375,000
Credit entries 200,000
Clifton's 2000 income statement included a $20,000 loss on sale of marketable securities and $15,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash.
Question 5. Refer to the above data. Based solely on the above information, Clifton's net cash flow from investing activities for 2000 is:
a. $125,000 net cash used by investing activities.
b. $100,000 net cash provided by investing activities.
c. $195,000 net cash used by investing activities.
d. $240,000 net cash provided by investing activities