Corona Company's Balance Sheet Accounts Follow: What Is Corona

question 73

Multiple Choice

Corona Company's balance sheet accounts follow: What is Corona Company's days' sales in inventory ratio for 2014, assuming net sales and gross profit for the period were $1,236,783, $927,587 respectively?

• A) 86.75
• B) 112.29
• C) 105.41
• D) 75.35
• E) 107.11

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Definitions:

Statement of Cash Flows

An accounting statement illustrating how fluctuations in income and balance sheet accounts influence cash and cash equivalents.

Operating Activities

Business activities directly related to the production and delivery of goods and services, which are reflected in a company's cash flow.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and items of income or expense to determine net cash provided by operating activities.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the coming year.