Finance Objective Questions - Calculating Days in Inventory and The Events Do Not Effect Quick Ratio


1. A firm has $100 of average inventory, operating profit of $500 and sales of $1,500. Its days in inventory is: 

  1. 36.5 days 
  2. 24.3 days 
  3. 73.0 days 
  4. Not enough information

2. Which of the following isolated events will NOT change the quick ratio for a manufacturer?

  1. Repayment of short-term debt  
  2. The cash purchase of new machinery 
  3. The credit sale of finished goods 
  4. A customer's cash payment of an outstanding receivable


These two objective questions in Finance are about finding average days in inventory and the events that will not affect quick ratio.

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