Use the following information to answer the following 5 questions. 

XYZ Company Balance Sheet as of December 31, 20X7 & 20X8

ASSETS:

20X7

20X8

Current assets:

Cash

$10,000

$12,000

Accounts receivable

20,000

25,000

Inventory

16,000

24,000

Prepaid insurance

4,000

3,000

50,000

64,000

Property & equipment

76,000

84,000

Total assets

$126,000

$148,000

LIABILITIES AND STOCKHOLDERS EQUITY:

Current liabilities:

Accounts payable

$15,000

$17,000

Other payables

3,000

7,000

18,000

24,000

Long term notes payable

35,000

40,000

Total liabilities

53,000

64,000

Stockholder’s equity

Capital stock, 2,400 shares outstanding

24,000

24,000

Retained earnings

49,000

60,000

73,000

84,000

Total liabilities and stockholders equity

$126,000

$148,000

XYZ Company Income Statement for the years ended December 31, 20X7 & 20X8

20X7

20X8

Sales revenues

$200,000

$250,000

Cost of goods sold

120,000

140,000

80,000

110,000

Selling and admin. expenses

40,000

65,000

40,000

65,000

Income tax expense

15,000

25,000

Net income

$25,000

$40,000

Dividends paid in 20X8 amounted to $29,000. Calculate the 12/31/X8 current ratio (round to

nearest tenth).

18.

Calculate the 12/31/X8 current ratio (round to nearest tenth).

1.5

2.7

2.5

.5

none of the above

19.

Calculate the 20X8 accounts receivable turnover assuming all sales during the year are made on account (round to the nearest tenth).

8.9

10.0

11.1

12.5

none of the above

20.

Calculate the 20X8 average number of days of inventory on hand (round to the nearest tenth of a day).

7.0

52.1

56.2

62.6

21.

Calculate the 20X8 EPS (round to nearest penny).

$25.00

$10.42

$4.58

$16.67

none of the above

22.

Calculate the % increase in accounts receivable during the year ended 20X8.

10%

20%

50%

125%

none of the above

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plz explain!