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

question 56

Multiple Choice

Mobile Company Mobile 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. Days of other financing required by Mobile at the end of 2010 would be

• A) 54.36 days
• B) (54.36 days)
• C) 102.94 days
• D) (5.27 days)

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Definitions:

Cyclohexanol

Cyclohexanol is a six-membered cyclic compound where one hydrogen atom is replaced by a hydroxyl group, primarily used as a precursor to nylon.

Sulfuric Acid

A strong mineral acid with the molecular formula H2SO4, widely used in industry and laboratory settings for its dehydrating, oxidizing, and sulfonating properties.

Cyclopentane

A cycloalkane with the molecular formula C5H10, consisting of a ring of five carbon atoms each connected with two hydrogen atoms, used as a solvent and in organic synthesis.

Cyclopentene

A cyclic hydrocarbon with the molecular formula C5H8, featuring a five-membered ring with one double bond.