1. Given: total current assets, $110,000; total assets, $250,000; total current liabilities, $97,000; total liabilities, $150,000; beginning inventory, $85,000; ending inventory, $89,500; cost of goods sold, $265,000. Calculate the inventory turnover.
a. 1.5
b. 0.7
c. 3.0
d. 0.3
2. A company has a current ratio of 2.1. What does that mean?
a. For each dollar of current liabilities, the company has approximately $2.10 of current assets
b. For each dollar of total assets, the company had approximately $2.10 of earnings
c. For each dollar of total liabilities, the company has approximately $2.10 of current assets
d. For each dollar of total liabilities, the company has approximately $2.10 of total assets