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:
Formal Authority
Officially sanctioned power given to an individual or entity to make decisions and enforce rules.
Organizational Structure
The system that outlines how activities are directed in order to achieve the goals of an organization, including the roles, responsibilities, and hierarchy.
Legitimacy
The general perception or acceptance that an action, entity, or regime is appropriate and justified.
Negotiators
Individuals who engage in negotiation, working to reach an agreement or resolve a dispute.