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Use the Following Selected Financial Information for Wilcox Corporation to Answer

question 43

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Use the following selected financial information for Wilcox Corporation to answer questions . Wilcox Corporation
Income Statement
For the Year Ended December 31,2015
 Net sales $2,870 Cost of goods sold 1,985 Gross profit $885 Operating expenses 620 Operating profit $265 Interest expense 40 Earnings before taxes $225 Income tax expense 80 Net profit $145\begin{array}{lr}\text { Net sales } & \$ 2,870 \\\text { Cost of goods sold } & 1,985\\\text { Gross profit } & \$ \overline{885} \\\text { Operating expenses } & 620\\\text { Operating profit } & \$ 265 \\\text { Interest expense } & 40\\\text { Earnings before taxes }&\$225\\\text { Income tax expense }&80\\\text { Net profit }&\$145\end{array} Wilcox Corporation
Balance Sheet
December 31, 2015
 Assets  Liabilities and stockholders’ equity  Current assets  Current liabilities  Cash $25 Accounts payable $85 Short-term investments 15 Accrued liabilities 45 Accounts receivable 70 Total current liabilities 130 Inventory 150 Long-term debt 240 Total current assets 260 Total liabilities 370 Long-term assets  Stockholders’ equity  Net PPE 390 Common stock and PIC 80 Goodwill 210 Retained earnings 410 Total stockholders’ equity 490 Total assets $860 Total liabilities and equity $860\begin{array}{lclr}\text { Assets }&&\text { Liabilities and stockholders' equity }\\\hline\text { Current assets }&&\text { Current liabilities }\\\text { Cash } & \$ 25 & \text { Accounts payable } & \$ 85 \\\text { Short-term investments } & 15 & \text { Accrued liabilities } & 45 \\\text { Accounts receivable } & 70 & \text { Total current liabilities } & 130 \\\text { Inventory } & 150 & \text { Long-term debt } & 240\\\text { Total current assets }&260&\text { Total liabilities }&370\\\\\text { Long-term assets }&&\text { Stockholders' equity }\\\text { Net PPE } & 390 & \text { Common stock and PIC } & 80 \\\text { Goodwill } & 210 & \text { Retained earnings } & 410\\&&\text { Total stockholders' equity }&490\\\text { Total assets }&\$860&\text { Total liabilities and equity }&\$860\end{array} WilcoxCorporation
Statement of Cash Flow Information
For the Year Ended December 31, 2015

 Cash from operating activities $150 Investing activities:  Capital expenditures $60 Acquisitions $10 Financing activities:  Proceeds from long-term borrowing $50 Payments on long-term borrowing $25 Payments of cash dividends $20 Cash paid for interest $10 Cash paid for income taxes $75\begin{array}{ll}\text { Cash from operating activities }&\$150\\\text { Investing activities: }\\\text { Capital expenditures } & \$ 60 \\\text { Acquisitions } & \$ 10\\\text { Financing activities: }\\\text { Proceeds from long-term borrowing } & \$ 50 \\\text { Payments on long-term borrowing } & \$ 25 \\\text { Payments of cash dividends } & \$ 20\\\text { Cash paid for interest } & \$ 10 \\\text { Cash paid for income taxes } & \$ 75\end{array}
-Wilcox's days payable outstanding is:


Definitions:

Zero-Factor Property

A rule stating that if the product of two factors equals zero, at least one of the factors must also be zero.

Equation

A statement in mathematics that declares two expressions, often including variables and constants, to be equivalent.

Factor

A number or expression that divides another number or expression evenly, with no remainder.

Zero-Factor Property

The rule stating if a product of two or more factors is zero, at least one of the factors must be zero.

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