FINANCIAL
STATEMENT ANALYSIS 1-51
PROGRESS CHECK 1.4
(Continued)
For each question, decide which ratio is appropriate and use it to calculate the answer. Mark
the correct answer and indicate which ratio you used. Check your solution with the Answer
Key on the following page.
12.
How many times can Fruit Packing, Inc. pay off
C
URRENT
L
IABILITIES
without relying
on
I
NVENTORIES
?
____ a) 0.75 times
____ b) 1.19 times
____ c) 1.25 times
____ d) 1.68 times
____ e) 1.80 times
Ratio:______________________________________________
13.
How many times did Fruit Packing, Inc. sell out and restock its merchandise?
____ a) 2.00 times
____ b) 2.29 times
____ c) 3.59 times
____ d) 6.72 times
____ e) 7.72 times
Ratio:______________________________________________