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

question 64

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 receivables outstanding at the end of 2010 was:

• A) 43.20 days
• B) 40.50 days
• C) 45.25 days
• D) 8.50 days

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Definitions:

Government Expenditures

Total spending by government agencies on goods, services, and public projects.

Crowding Out

A situation in economics where increased public sector spending reduces or eliminates private sector spending.

Government Borrowing

The act of governments raising funds through the issuance of securities or bonds to finance public expenditure, leading to government debt.

Personal Income Taxes

Taxes imposed on individuals' income by the government, including wages, salaries, and investment earnings.