The Following Information Relates to Bonny Unlimited for the Past

question 44

Multiple Choice

The following information relates to Bonny Unlimited for the past two years. $\begin{array}{|l|l|l|}\hline \text { Account } & \text { Current year } & \text { Prior year } \\\hline \text { Net sales (all credit) } & \$ 250,000 & \$ 180,000 \\\hline \text { Cost of goods sold } & \$ 115,000 & \$ 110,000 \\\hline \text { Gross profit } & \$ 135,000 & \$ 70,000 \\\hline \text { Income from operations } & \$ 32,000 & \$ 30,000 \\\hline \text { Interest expense } & \$ 4,000 & \$ 7,000 \\\hline \text { Net income } & \$ 24,000 & \$ 18,000 \\\hline \text { Cash } & \$ 16000 & \$ 14000\\\hline \text { Accounts receivable, net } & \$ 20,000 & \$ 31,000 \\\hline \text { Inventory } & \$ 52,000 & \$ 44,000 \\\hline \text { Prepaid expenses } & \$ 2,000 & \$ 1,000 \\\hline \text { Total current assets } & \$ 90,000 & \$ 90,000 \\\hline \text { Total long-term assets } & \$ 100,000 & \$ 120,000 \\\hline \text { Total current liabilities } & \$ 60,000 & \$ 90,000 \\\hline \text { Total long-term liabilities } & \$ 22,000 & \$ 78,000\\\hline\text { Common stock, no par, } & \$ 40,000 & \$ 40,000 \\2,000 \text { shares, market value } \$ 90 \text { per share } & &\\\hline\text {Retained earnings}&\$68,000&\$2,000\\\hline\end{array}$
- What is days' sales in receivables for the current year?

• A)51.671 days
• B)7.50 days
• C)54.00 days
• D)37.23 days

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Definitions:

Caterpillars

The larval stage of butterflies and moths, during which they often feed voraciously before undergoing metamorphosis into adults.

Phylogenetic Species Concept

The phylogenetic species concept is the idea that species are the smallest possible groups whose members are descended from a common ancestor and who all possess defining or derived characteristics that distinguish them from other such groups.

Biological Species Concept

Holds that species are groups of actually (or potentially) interbreeding natural populations that are reproductively isolated from other such groups.

General Lineage Species Concept

The general lineage species concept is the idea that species are metapopulations of organisms that exchange alleles frequently enough that they constitute the same gene pool and therefore the same evolutionary lineage.