Answer: 94 DAYS
Explanation: The average time it takes for the business to complete the whole process of making initial cash outflow to produce goods and receiving cash from customers by selling those goods produced is called operating cycle of that business.
formula = number of days of inventory + number of days in accounts receivable
therefore,
operating cycle = 61 days + 33 days = 94 days
If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased
Answer:
Explanation:
Balance sheet presentation :
Long term liabilties
Bonds payable 500000
Add: Premium on bonds payable 10000
Carrying value of bonds 510000
Answer:
B. Risk of accounting loss: $230,000; Off-balance sheet risk: $0
Explanation:
Accounting loss occurs due to credit provided and the market risk associated with it, already the company has provided for $20,000 un-collectible debts, now the company can have maximum of $250,000 - $20,000 = $230,000 of loss.
Talking about off-balance sheet loss, it will be zero, as off-balance sheet loss occurs only when there is some statutory or non-statutory obligation attached to any of the assets, which is not stated in accounts. Since no obligation is attached for receiving such amount from accounts receivables.
Thus, correct answer is
B. Risk of accounting loss: $230,000; Off-balance sheet risk: $0