Items 1 and 2 are based on the following:
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|
Rey, Inc. |
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|
2006 |
2005 |
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|
Cash |
$ |
170,000 |
$ |
90,000 |
|
Accounts receivable (net) |
450,000 |
400,000 |
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|
Merchandise inventory |
540,000 |
420,000 |
||
|
Short-term marketable securities |
80,000 |
40,000 |
||
|
Land and building (net) |
1,000,000 |
1,000,000 |
||
|
Mortgage payable—current portion |
60,000 |
50,000 |
||
|
Accounts payable and accrued liabilities |
240,000 |
220,000 |
||
|
Short-term notes payable |
100,000 |
140,000 |
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Net credit sales totaled $3,000,000 and $2,000,000 for the years ended December 31, 2006 and 2005, respectively.
At December 31, 2006, Rey’s quick (acid-test) ratio was
- 1.50 to 1.
- 1.75 to 1.
- 2.06 to 1.
- 3.10 to 1.
For 2006, Rey’s accounts receivable turnover was
- 1.13
- 1.50
- 6.67
- 7.06