1. Which of the follwing financial formulas is INCORRECT?
a. Net worth = Total assets – total liabilities
b. Debt Ratio = Liabilities/Net worth
c. Liquidity Ratio = Liquid Assets/Monthly Expenses
d. Savings Ratio – Amount saved per month - Expenses
2. Beckenworth had cost of goods sold of $10,721 million, ending inventory of $3,389 million, and average inventory of $2,095 million. Its days' sales in inventory equals:(Use 365 days a year.)
a. 0.3 days.
b. 115.4 days.
c. 44.0 days.
d. 43.8 days.
e. 71.3 days.