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Condensed Financial Data Are Presented Below for the Phoenix Corporation

question 122

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Condensed financial data are presented below for the Phoenix Corporation:
20142013 Accounts receivable $267,500$230,000 Inventory 312,500257,500 Total current assets 670,000565,000 Intangible assets 50,00060,000 Total assets 825,000695,000 Current liabilities 252,500200,000 Long-term liabilities 77,50075,000 Sales 1,640,000 Cost of goods sold 982,500 Interest expense 10,000 Income tax expense 77,500 Net income 127,500 Cash flow from operations 71,000 Cash flow from investing activities (6,000)  Cash flow from financing activities (62,500)  Tax rate 30%\begin{array}{lrr}&2014&2013\\\text { Accounts receivable } & \$ 267,500 & \$ 230,000 \\\text { Inventory } & 312,500 & 257,500 \\\text { Total current assets } & 670,000 & 565,000 \\\text { Intangible assets } & 50,000 & 60,000 \\\text { Total assets } & 825,000 & 695,000 \\\text { Current liabilities } & 252,500 & 200,000 \\\text { Long-term liabilities } & 77,500 & 75,000 \\\text { Sales } & 1,640,000 & \\\text { Cost of goods sold } & 982,500 & \\\text { Interest expense } & 10,000 & \\\text { Income tax expense } & 77,500 & \\\text { Net income } & 127,500 & \\\text { Cash flow from operations } & 71,000 & \\\text { Cash flow from investing activities } & (6,000) & \\\text { Cash flow from financing activities } & (62,500) & \\\text { Tax rate } & 30 \% &\end{array}
-The inventory turnover for 2014 is (rounded) :


Definitions:

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay creditors and distribute any remaining assets to the shareholders.

Liabilities

Financial obligations or debts owed by a business or individual to creditors.

Personally Insolvent

A state in which an individual cannot meet their debt obligations with their available financial resources, potentially leading to bankruptcy.

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