The Flower Shoppe has accounts receivable of $3,506, inventory of $4,407, sales of $218,640, and cost of goods sold of $169,290

A firm has sales of $68,400, costs of $42,900, interest paid of $2,100, and depreciation of $6,500. The tax rate is 34 percent. What is the value of the cash coverage ratio?    A.  12.14 B.  15.24 C.  17.27 D.  23.41 E.  24.56 Cash coverage ratio = ($68,400 - $42,900)/$2,100 = 12.14

59.

The Bike Shop paid $1,990 in interest and $1,850 in dividends last year. The times interest earned ratio is 2.2 and the depreciation expense is $520. What is the value of the cash coverage ratio?    A.  1.67 B.  1.80 C.  2.21 D.  2.46 E.  2.52 EBIT = 2.2 × $1,990 = $4,378; Cash coverage ratio = ($4,378 + $520)/$1,990 = 2.46

60.

Al's Sport Store has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?    A.  74.19 days B.  84.76 days C.  121.07 days D.  138.46 days E.  151.21 days Inventory turnover = $628,300/$208,400 = 3.014875 Days in inventory = 365/3.014875 = 121.07 days

61.

The Flower Shoppe has accounts receivable of $3,506, inventory of $4,407, sales of $218,640, and cost of goods sold of $169,290. How many days does it take the firm to sell its inventory and collect the payment on the sale assuming that all sales are on credit?    A.  14.67 days B.  15.35 days C.  16.23 days D.  17.18 days E.  17.47 days Days in inventory = 365/($169,290/$4,407) = 9.502 days Days' sales in receivables = 365/($218,640/$3,506) = 5.853 days Total days in inventory and receivables = 9.502 + 5.853 = 15.35 days