Zimt AG wrote down the value of its inventory in 2007 and reversed the write-downin 2008. Compared to the ratios that would have been calculated if the write-down hadnever occurred, Zimt’s reported 2007:A. current ratio was too high.B. gross margin was too high.C. inventory turnover was too high.

Answer each of the questions In the following unrelated situations. (@) The curTent ratio of a company Is 6:1 and Its acid-test ratio is 1:1. If the Inventories and prepald items amount to $523,000, what Is the amount of current llabillitles? Current Llabilities (b) A company had an aVerage Inventory last year of $210,000 and Its Inventory tumover Was 5. If sales volume and unit cost remaln the samne this year as last and Inventory turnover Is 8 this year, what will average Inventory have to be during the current year? (Nound answer do 0 decimal places, e.g.125. Average Inventory (c) A company has current assets of S95,000 (of which $38,000 15 Inventory and prepaid tems) and current llabilities of $38,000, What Is the Current ratlo? What Is the aeid-test rabo? IF the company borows $13,000 cash from a bank on a 120-day loan, what will its current ratlo be? What will the add-test ratio bez (Round answers to 2 decimalplaces, c.0. 2.50.) Current Ratlo Add Test Ratio New Current Ratio New…

While  examining the December 31, 2010 financial statements of Dawn Company, the following errors are discovered:   Inventory at January 1 had been overstated by P50,000.;  Inventory at December 31 was understated by P100,000.;  During 2010, Dawn received a P200,000 cash advance from customer for merchandise to be manufactured and shipped during 2011.  The collection was credited to sales revenue.;  The net income reported on the 2010 income statement before reflecting any adjustments for the above items is P5,000,000.  What is the corrected net income for the year ended December 31, 2010?   Choices; 4,950,000 5,150,000 5,100,000 4,850,000