Kannan Carpets,Inc

question 47

Multiple Choice

Kannan Carpets,Inc.has asked you to calculate the company's quick ratio for 2001.All you have is a partial balance sheet and some assumptions.Using the information provided,calculate Kannan's quick ratio for 2001.
Gross profit margin = 50%
Inventory turnover (COGS/Inv) = 5
2001 sales = $3,000
Assets Liabilities & Equity
Cash ? Accounts payable $50
AR $40 Accruals ?
Inventory ? Long-term debt $400
Net fixed assets $500 Equity 250
Total assets $900 Total liab.& equity ?

• A)0.2
• B)0.4
• C)0.6
• D)0.8

---

Definitions:

Interrogatory

A rephrased definition: Written questions served by one party on an opponent to gather information about facts related to the lawsuit, requiring a formal response under oath.

Trial Notebook

A comprehensive compilation of documents, evidence, witness lists, and other critical information organized by attorneys for use during a trial.

Subpoenaing Witnesses

The legal process of compelling individuals to testify in court or provide evidence in a legal proceeding.

Trial Exhibits

Materials or objects presented during a trial as evidence to support the arguments of either side in a legal dispute.