Question

Assume the following sales data for a company: Current year Preceding year $757,611 $562,022 What is the percentage increase in sales from the preceding year to the current year? Select the correct answer. 074.18% 025.82% 0134.8096 034.80%

Answer 1

Q1)

Answer: 4^th option

Percentage increase = {(Current year – Previous year) / Previous year} × 100

                                    = {(757,611 – 562,022) / 562,022} × 100

                                    = (195,589 / 562,022) × 100

                                    = 34.80%

Q2)

Answer: 4^th option

Inventory turnover ratio = CGS / Average inventory

                                        = 166,384 / {(30,662 + 39,889) / 2}

                                        = 166,384 / 35,275.5

                                        = 4.72 times

Required number of days = 365 days in a year / Inventory turnover ratio

                                         = 365 / 4.72

                                         = 77 days

Q3)

Answer: 2^nd option

Quick assets = Accounts receivable + Cash + Marketable securities

                      = 35,000 + 25,000 + 36,000

                      = 96,000

Q4)

Answer: 1^st option

Percentage increase = {(Current year – Previous year) / Previous year} × 100

                                    = {(1,025,000 – 820,000) / 820,000} × 100

                                    = (205,000 / 820,000) × 100

                                    = 25%