Ribaudo Corporation Has Provided the Following Financial Data from Its

question 148

Multiple Choice

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:
$\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Cash}&\$ 74,000 & \$ 130,000 \\\text { Accounts receivable, net}&\$ 255,000 & \$ 240,000 \\\text {Inventory. }&\$ 173,000 & \$ 180,000 \\\text {Total current assets }&\$ 564,000 & \$ 610,000 \\\text {Total assets. }&\$ 1,350,000 & \$ 1,330,000 \\\text {Accounts payable }&\$ 170,000 & \$ 160,000 \\\text {Total liabilities }&\$ 633,000 & \$ 620,000 \\\text {Total stockholders' equity. }&\$ 717,000 & \$ 710,000 \\\text {Sales (all on account) }&\$ 1,290,000 & \\\text {Cost of goods sold }&\$ 700,000 &\end{array}$
-The company's operating cycle for Year 2 is closest to:

• A) 95.9 days
• B) 75.3 days
• C) 162.0 days
• D) 9.2 days

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Definitions:

Investment Publication

A document or report providing analysis, news, and insights on investments, markets, and financial strategies.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the risk associated with the security.

Capital Structure Weight

Capital structure weight refers to the proportion of each type of capital (debt, equity, etc.) in the total capital of a company, often used in calculating the weighted average cost of capital (WACC).

Convertible Bonds

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bond's life, usually at the discretion of the bondholder.