Use the Information That Follows Taken from Campbell Company's Financial

question 37

Multiple Choice

Use the information that follows taken from Campbell Company's financial statements for the years ending December 31, 2017 and 2016.
$\begin{array}{lrr}\text { Balance Sheet Information }&2017&2016\\\hline \text { Assets}\\\text { Cash } & \$ 25 & \$ 50 \\\text { Accounts receivable } & 60 & 70 \\\text { Inventory } & 40 & 30 \\\text { Land, building, and equipment } & \underline{225} & \underline{250} \\\text { Total Assets } & \$ \underline{350} & \$ \underline{400} \\\end{array}$

$\begin{array}{l}\text { Liabilities and Shareholders' Equity }\\\hline \text { Accounts payable } & \$ 85 & \$ 100 \\\text { Long term note payable } & 180 & 200 \\\text { Common stock } & 150 & 150 \\\text { Retained earnings } & \underline{(65) } &\underline{ (50) } \\\text { Total Liabilities \& Shareholders' Equity }& \underline{\$ 350 }& \underline{\$ 400 }\\\end{array}$

$\begin{array}{lr}\text { Income Statement Information }\\\text { Sales (all sales are on credit) } & \$ 850 \\\text { Cost of goods sold } & \underline{425} \\\text { Gross profit } & {425}\\\text { Operating expenses } & \underline{ 440} \\\text { Net income } &\$(15) \end{array}$
Calculate Campbell's inventory turnover ratio and accounts receivable turnover ratio for the year ended 2017. Further, assume that in Campbell's industry, the industry average inventory turnover ratio is 12 and the industry average receivables turnover ratio is 14.

• A)Campbell's inventory turnover ratio and accounts receivable turnover ratios are better than average for Campbell's industry.
• B)Campbell's inventory turnover ratio and accounts receivable turnover ratios are worse than average for Campbell's industry.
• C)Campbell's inventory turnover ratio is better but the accounts receivable turnover ratio is worse than average for Campbell's industry.
• D)Campbell's inventory turnover ratio is worse and accounts receivable turnover ratio is better than average for Campbell's industry.

---

Definitions:

Stress

A psychological and physical reaction to demands, perceived as challenges or threats, which can affect health and wellbeing.

Cytokine Release

The process by which immune cells secrete cytokines, proteins that modulate the immune and inflammatory responses.

Arterial Plaque

Deposits of fatty substances, cholesterol, and other materials on the inner walls of arteries, which can lead to cardiovascular diseases.

Stress Hormones

Hormones like cortisol and adrenaline that are released in response to stress, affecting the body's metabolism, immune system, and other functions.