Question

6. Match each financial analysis ratio with its value, using the following company data.

The company reports the following data for the month of October:

Cash + Short-Term Investments + Current Receivables = $250,000

Accounts Receivable = $60,000

Average Inventory = $50,000

Cost of Goods Sold = $100,000

Current Liabilities = $200,000

Net Sales = $400,000

Group of answer choices

Inventory Turnover

      [ Choose ]            1.25            .75            54.75            2.0      

Days' Sales Uncollected

      [ Choose ]            1.25            .75            54.75            2.0      

Gross Margin

      [ Choose ]            1.25            .75            54.75            2.0      

Acid Test
      [ Choose ]            1.25            .75            54.75            2.0      

7.

On August 17, at the end of the day, the cash register’s record shows $967, but the count of cash in the register is $965.

Do I debit or credit the Cash account?                              [ Select ]                       ["debit", "credit"]      

Do I debit or credit the Sales account?                             [ Select ]                       ["debit", "credit"]      

Do I debit or credit the Cash over and short account?                             [ Select ]                       ["debit", "credit"]      

8.

Ceres Computer Sales Company uses the perpetual inventory system. The company has a policy to record freight charges for purchased merchandise in its Merchandise Inventory account. Prepare the general journal entries to record the following merchandise purchase transactions that occurred in the month of December.

Dec 4: purchased merchandise on credit for $2,600, terms 1/20, n/30.

The debit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expense", "Accounts Payable"]      

The credit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expense", "Accounts Payable"]      

9.

Ceres Computer Sales Company uses the perpetual inventory system. The company has a policy to record freight charges for purchased merchandise in its Merchandise Inventory account. Prepare the general journal entries to record the following merchandise purchase transactions that occurred in the month of December.

Dec 15: returned faulty merchandise purchased for $600 on Dec 4 to seller for credit.

The debit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expenses", "Accounts Payable"]      

The credit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expense", "Accounts Payable"]      

10.

Ceres Computer Sales Company uses the perpetual inventory system. The company has a policy to record freight charges for purchased merchandise in its Merchandise Inventory account. Prepare the general journal entries to record the following merchandise purchase transactions that occurred in the month of December.

Dec 18: paid freight charges of $200 for merchandise ordered last month (FOB shipping point).

The debit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expense", "Accounts Payable"]      

The credit entry is?                             [ Select ]                       ["Cash", "Accounts Receivable", "Merchandise Inventory", "Freight Expense", "Accounts Payable"]      

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 6
Inventory Turnover
(Cost of Goods Sold/ Average Inventory)	Amount $
Cost of Goods Sold	100,000.00
Average Inventory	50,000.00
Inventory Turnover	2.00
So correct answer is 2.	182.50
Days' Sales Uncollected
(365* Current Receivables/ Sales)
Days' Sales Uncollected	54.75
So correct answer is 54.75.
Gross Margin
(Gross Margin/ Sales)	Amount $
Sales	400,000.00
Cost of Goods Sold	100,000.00
Gross Margin	300,000.00
Gross Margin	0.75
So correct answer is 0.75.
Acid Test
(Quick Assets/ Current Liabilities)
Cash + Short-Term Investments + Current Receivables = $250,000	Amount $
Quick Assets	250,000.00
Current Liabilities	200,000.00
Acid Test	1.25
So correct answer is 1.25.
Answer 7
You should debit the Cash over and short account by $ 2.
You should credit the Cash account by $ 2.
Answer 8
The debit entry is Merchandise Inventory.
The credit entry is Accounts Payable.
Answer 9
The debit entry is Accounts Payable.
The credit entry is Merchandise Inventory.
Answer 10
The debit entry is Merchandise Inventory.
The credit entry is Cash.