Use the following selected financial information for Wilcox Corporation to answer questions 11-20. Wilcox Corporation Income Statement
Question:
Use the following selected financial information for Wilcox Corporation to answer questions 11-20.
Wilcox Corporation
Income Statement
For the Year Ended December 31, 20XX
Net sales $2,870
Cost of goods sold 1,985
Gross profit $ 885
Operating expenses 620
Operating profit $ 265
Interest expense 40
Earnings before taxes $ 225
Income tax expense 80
Net profit $ 145
Wilcox Corporation
Balance Sheet
December 31, 20XX
Assets Liabilities and stockholders' equity
Current assets Current liabilities
Cash $ 25 Accounts payable $ 85
Short-term investments 15 Accrued liabilities 45
Accounts receivable 70 Total current liabilities 130
Inventory 150 Long-term debt 240
Total current assets 260 Total liabilities 370
Long-term assets Stockholders' equity
Net PPE 390 Common stock and PIC 80
Goodwill 210 Retained earnings 410
Total stockholders' equity 490
Total assets $860 Total liabilities and equity $860
WilcoxCorporation
Statement of Cash Flow Information
For the Year Ended December 31, 20XX
Cash from operating activities $150
Investing activities:
Capital expenditures $ 60
Acquisitions $ 10
Financing activities:
Proceeds from long-term borrowing $ 50
Payments on long-term borrowing $ 25
Payments of cash dividends $ 20
Cash paid for interest $ 10
Cash paid for income taxes $ 75
Wilcox’s average collection period is:
a. | 5 days | |
b. | 9 days | |
c. | 13 days | |
d. | 15 days |
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy