Company Manufactures Computer Technology Devices $\underline{\text {Selected Income Statement Data - for the year ending December 31, 2010:}}$

question 22

Multiple Choice

Company manufactures computer technology devices. Selected financial data for Mobile is presented below, use the information to answer the following questions:
$\begin{array} { l l c }\underline{ \text { Current Assets }} & \text { As of Dec. 31, 2010 } & \text { Dec. 31, 2009 } \\ \text { Cash and short-term investments } & \$ 1,267,038 & \$ 616,604 \\ \text { Accounts Receivable (net) } & 490,816 & 665,828 \\ \text { Inventories } & 338,599 & 487,505 \\ \text { Prepaid Expenses and other current assets } & \underline{292.511 }&\underline{ \$ 21.915} \\ \text { Total Current Assets } & \$ 2,388,964 & \$ 2,061,852 \\\\ \underline{\text { Current Liabilities } }& & \$ 38,108 \\ \text { Short-term borrowings } & \$ 25,190 & 210,090 \\ \text { Current portion of long-term debt } & 182,295 & 334,247 \\ \text { Accounts payable } & 296,307 & 743,999 \\ \text { Accrued liabilities } & 941,912 & 239.793 \\ \text { Income taxes payable } & \underline{203,049} &\underline{239,793} \\\text { Total Current Liabilities }&1,648,753&1,566,237\end{array}$

$\underline{\text {Selected Income Statement Data - for the year ending December 31, 2010:}}$
$\begin{array}{llcc} \text { Net Sales} &\$4,885,340 \\ \text { Cost of Goods Sold } &2,542,353\\ \text { Operating Income} &733,541\\ \text {Net Income } &230,101\\\end{array}$


$\underline{\text {Selected Statement of Cash Flow Data - for the year ending December 31, 2010:}}$

$\begin{array}{llcc} \text { Cash Flows from Operations} &\$ 1,156,084 \\\end{array}$

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Refer to the information for Mobile Company. Mobile's 2010 Inventory Turnover ratio is

• A) 7.46
• B) 11.83
• C) 6.16
• D) 5.62

Explain the significance of the Cambrian explosion.

Determine the relative ages of rocks and geological features.

Utilize dating methods for determining the age of groundwater.

Know the geologic principles used in the exploration of natural resources.

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Definitions:

Operating Cash Flow

Cash generated by a company's normal business operations, indicating whether a company is capable of generating sufficient positive cash flow to maintain and grow its operations.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, often expressed as a percentage of sales revenue.

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production or output, like labor and materials.

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.