21 maverick inc converted a 4 000 account receivable from roberto to a 75 day 8 note 4309602

21) Maverick, Inc. converted a $4,000 account receivable from Roberto to a 75-day, 8% note receivable. The maturity value (assume a 360-day year) that will be due from Roberto in 75 days (round to nearest dollar) is:

A) $4,000.

B) $4,067.

C) $4,320.

D) some other number.

22) ACME Corporation lent $25,000 to Hastings, Inc. for 75 days at 7% interest on November 22, 2012. How much interest will have accrued to ACME Corporation on December 31, 2012, assuming a 360-day year?

A) $364.58

B) $189.58

C) $175.00

D) Some other number

23) A note is signed on April 15, 2013 at 9% for 216 days. The maturity date will be:

A) November 15.

B) November 16.

C) November 17.

D) November 18.

24) Using a 365-day year, the maturity value of a 55-day, 7% note for $23,000 rounded to the nearest cent is:

A) $23,000.00.

B) $23,242.60.

C) $23,245.97.

D) $24,610.00.

25) A customer's written promise to pay an amount of money to a business with interest is a(n) ________ of the business.

A) account receivable

B) account payable

C) note receivable

D) note payable

7.7   Questions

1) Another name for the quick ratio is the acid-test ratio.

2) The formula for the quick ratio is quick assets divided by non-current assets.

3) Accounts receivable turnover measures the ability to collect cash from a company's credit customers.

4) The account receivable turnover is computed by taking the average net accounts receivable and dividing by the net credit sales.

5) Inland Equipment has cash of $56,000; net accounts receivable of $67,000; short-term investments of $12,000 and inventory of $40,000. It also has $45,000 in current liabilities and $75,000 in long-term liabilities. The quick ratio for Inland Equipment is:

A) 2.33.

B) 2.73.

C) 3.00.

D) 3.89.

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