question 43
Multiple Choice
Comparative financial statements for Cross, Inc.are shown below: Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant and equipment, net Total assets Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Total liabilities Stockholders’ equity: Common stock Retained earnings Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity Net sales Cost of goods sold Gross margin Operating expense Operating income Interest expense Earnings before tax Income taxes Net income December 312018$89,103142,00096,70821,203349,014822,576$1.171.590$85,44338,112123,555302,430425,985600,000145,60514,700745,605$1,171,590 Year Ended December 312018$17,005,85212,250,2574,755,5953,585,6571,169,93828,5001,141,438342,431$799,0072017$68,203135,00085,6945,118294,015718,144$1012,159$62,39433,50795,901290,324386,225600,00025,9348,000625,934$1,012,1592017$13,809,5859,825,6143,983,9713,400,258583,71327,300556,413166,924$389,489 How much is days' sales in inventory for Cross, Inc.for 2018?
Definitions:
Future Cash Flows
Projected financial gains or losses for a specific period in the future.
Financial Advisors
Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.
Collateral
Assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreed upon terms.
Cash Flows
The full extent of money transactions processed by a business, considerably affecting its ability to liquidate assets.