question 122
Multiple Choice
Condensed financial data are presented below for the Phoenix Corporation:
Accounts receivable Inventory Total current assets Intangible assets Total assets Current liabilities Long-term liabilities Sales Cost of goods sold Interest expense Income tax expense Net income Cash flow from operations Cash flow from investing activities Cash flow from financing activities Tax rate 2014$267,500312,500670,00050,000825,000252,50077,5001,640,000982,50010,00077,500127,50071,000(6,000) (62,500) 30%2013$230,000257,500565,00060,000695,000200,00075,000
-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.