Mandich Co

question 34

Multiple Choice

Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:

-On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors?

• A) $390,000.
• B) $445,000.
• C) $495,000.
• D) $660,000.
• E) $795,000.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales.

Accounts Receivable Period

Also known as days sales outstanding (DSO), it measures the average number of days it takes for a company to collect payment after a sale has been made.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products or services, and collect cash from these sales.

Standards

Established norms or requirements that are used as a basis for comparison or compliance.