Mobile Company
Mobile Company Manufactures Computer Technology Devices $\text { Selected Income Statement Data - for the year ending December 31, 2010: }$

question 17

Multiple Choice

Mobile Company
Mobile Company manufactures computer technology devices.Selected financial data for Mobile is presented below; use the information to answer the following questions:
$\begin{array}{lcc}\underline{\text { current Assets }}& \text { As of Dec. } 31,2010 &\text { Dec. } 31,2009\\\text { Cash and short-term investments } & \$ 1,267,038 & \$ 616,604 \\\text { Accounts Receivable (net) } & 490,816 & 665,828 \\\text { Inventories } & 338,599 & 487,505 \\\text { Prepaid Expenses and other current assets } &\underline{ 292,511} & \underlind{291,915}\\\text { Total Current Assets }&\$ 2,388,964 & \$ 2,061,852\\\\\text {Current Liabilities }\\\text { Short-term borrowings } & \$ 25,190 & \$ 38,108 \\\text { Current portion of long-term debt } & 182,295 & 210,090 \\\text { Accounts payable } & 296,307 & 334,247 \\\text { Accrued liabilities } & 941,912 & 743,999 \\\text { Income taxes payable } & \underline{203,049 }&\underline{ 239,793 }\\\text { Total Current Liabilities }&1.648753&566237\\\end{array}$


$\text { Selected Income Statement Data - for the year ending December 31, 2010: }$
$\begin{array}{l}\begin{array}{l}\text { Net Sales } &\$ 4,885,340\\\text { Cost of Goods Sold }&2,542,35 \\\text { Operating Income } &733,54 \\\text { Net Income }&230,10\end{array}\\\begin{array}{r}\end{array}\end{array}$

$\text { Selected Statement of Cash Flow Data - for the year ending December } 31,2010:$
$\begin{array}{l}\begin{array}{l}\text { Cash Flows from Operations } &\$ 1.156,08\\\end{array}\\\begin{array}{r}\end{array}\end{array}$
-Refer to the information for Mobile Company.Mobile's days accounts payable outstanding at the end of 2010 is:

• A) 7.53 days
• B) 48.09 days
• C) 45.51 days
• D) 50 days

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Definitions:

Liquidating

The process of converting assets into cash often during the closure of a business.

Terminating

The act of bringing something to an end or conclusion, such as a contract, agreement, or process.

Definite-Term Lease

A lease agreement with a specific beginning and end date, distinguishing it from a periodic or at-will tenancy.

Periodic-Tenancy Lease

A rental agreement that automatically renews for successive periods (such as monthly or yearly) until either party terminates it.