FINANCE PRACTICE TEST

Question 18

The following 10 questions pertain to "Cline Customer Bikes" their income statement and balance sheet. Note I've provided the link to the Income Statement & Balance Sheet in this question is you haven't already downloaded it from Course Docs.

2-3-1:

What was their depreciation expense for 2000?

Answer

The Depreciation Expense for the Year 2000 was $ 30

Question 19

2-3-2

Current Ratios for 1999 and 2000

Answer

Current Ratios 1999 = CA/CL = 740/780 = 0.948

Current Ratios 2000 = CA/CL = 820/840 = 0.976

Question 20

2-3-3

Current Ratio for 2000 better or worse compared to 1999

Answer: “Better”

Question 21

2-3-4

Inventory turnover ratio of 2000

Answer

Inventory Turnover Ratio: Sales/Inv ...