Summary Balance Sheet Data for Greener Gardens Co

question 32

Multiple Choice

Summary balance sheet data for Greener Gardens Co.is shown below (in thousands of dollars) .The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons:

From this data we may conclude that

• A) Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt.
• B) Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
• C) Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
• D) Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
• E) Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities.

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Definitions:

Racial/Ethnic Group

A community of individuals who share common cultural, linguistic, or ancestral heritage.

Hispanics

Refers to individuals of Spanish-speaking ancestry, primarily from Latin American countries, living in the United States or other parts of the world.

Asians

People originating from or having ancestry in Asia, a continent that includes a diverse range of cultures, languages, and histories.

Steering

In the context of real estate, the practice of influencing home buyers' choices based on race or ethnicity, often leading to housing segregation.