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:
- 36.5 days
- 24.3 days
- 73.0 days
- Not enough information
2. Which of the following isolated events will NOT change the quick ratio for a manufacturer?
- Repayment of short-term debt
- The cash purchase of new machinery
- The credit sale of finished goods
- 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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