Summary Balance Sheet Data for Greener Gardens Co

question 76

Multiple Choice

Summary balance sheet data for Greener Gardens Co.is shown below (in thousands of dollars) .The company is in a highly seasonal business,and the data show its assets and liabilities at peak and off-peak seasons:
From this data we may conclude that

• A) Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt.
• B) Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
• C) Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
• D) Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
• E) Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities.

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Definitions:

Scientific Management

A theory in management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Worker Productivity

The measure of the efficiency of a worker or group of workers in converting inputs into useful outputs.

Telomeres

The area at the tips of each chromosome that is reduced to a tiny amount as time passes. By the end of life, the telomeres are very short.

Chromosomes

Long, stringy formations found within the cell nucleus of both animals and plants, composed of proteins and a solitary DNA molecule, responsible for bearing genetic data.