The Following Are the Income Statements and Balance Sheets for Coors

question 19

Multiple Choice

The following are the income statements and balance sheets for Coors Company: $\begin{array}{ll}&20X2\\\text { Sales (only credit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operating income } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expens e } & \underline{85.0} \\\text { Net income } & \$ 127.4\end{array}$
$\begin{array}{llllll}\text { Curpentacsete: } & 20 \times 2 & 20 \times 1 & \text { Curpentliah. } & 20 \times 2 & 20 \times 1\\\text { C ash } & \$ 36 & \$ 38 & \text { Accts payable } & \$ 98 & \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { W ages payable } & 18 & 16 \\\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\\text { Total current as sets } & \$ 356 & \$ 306 & \text { of long-term debt } & 30 & 6\\\text { Long-term assets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & (206) & (180) & \text { Long-term liabilities } & \underline{66} & \underline{92}\\\text { Total long- term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }&&&\text { Owners' equity: }\\\end{array}$ $\begin{array}{lll}\text { Common stock, } \$ 5 \text { par } & \$ 80 & \$ 80 \\\text { Retained income } & \underline{150} & \underline{180} \\\text { Total owners' equity } & \$ 230 & \$ 260 \\\text { Total liab. }\\\text { and own. equity } & \$ 470 & \$ 442\\\text { Total ass ets } &\$ 470 & \$ 442\\\text { December } 31 \text { market price per share: } & \$ 120& \$ 106\end{array}$ The average collection period in days for Coors Company in 20X2 is:

• A) 464.1 days
• B) 5.0 days
• C) 40.9 days
• D) 36.8 days

---

Definitions:

Integrative Bargaining

A rephrased definition: A negotiation approach aiming at mutual gain, where the interests of all parties are optimized rather than competed over.

Aggressive Avoidance

A defensive strategy where an individual or group actively avoids certain situations or making decisions, often through confrontational or hostile means.

Passive Aggressive Avoidance

A behavior pattern where individuals express negative feelings, resentment, or aggression in indirect or passive ways, rather than directly addressing conflict.

Promises and Offers

A strategy in negotiations where commitments or benefits are proposed to reach an agreement.