question 59
Multiple Choice
pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Shet (Millions of $ )
Assets Cash and securities Accounts receivable inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Cong-term bonds Cotal liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2016$1,554.009,660.0013,440.00$24,654.0017,346.00$42,000.00$7,980.005,880.004,620.00$18,480.0010,920.00$29,400.003,360.009,240.00$12,600.00$42,000.00
Income Statement (Millions of $) Net sales Operating costs except depr’n Depreciation Earnings bef int and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Dther data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2016$58,800.00$55,274.00$1,029.00$2,497.001,050.00$1,447.00$314.00$1,133.00175.00509.836.25%21.7%$77.69
-Refer to the data for Pettijohn Inc.What is the firm's days sales outstanding? Assume a 360-day year for this calculation.
Definitions:
Material Breach
A significant violation of a contract that permits the other party to either compel performance, seek remedies for damages, or terminate the agreement.
Nonbreaching Party
The party in a contract who has not violated the agreement and may be entitled to legal remedies.
Obligations
Duties or actions that an individual or entity is legally required to perform according to the terms of a contract or law.
Mutual Rescission
An agreement between all parties to a contract to terminate their respective duties under the contract.