Swim Suits Unlimited is in a highly seasonal business, and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash$50 $30 Marketable securities0 20 Accounts receivable40 20 Inventories100 50 Net fixed assets 500 500 Total assets$690 $620 ? Payables and accruals$30 $10 Short-term bank debt50 0 Long-term debt300 300 Common equity 310 310 Total claims$690 $620 ? From this data we may conclude that
A. Swim Suits' current asset financing policy calls for exactly matching asset and liability maturities.
B. Swim Suits' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt.
C. Swim Suits follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
D. Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
E. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy.
Answer: C
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Indicate whether the statement is true or false
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Treaster, Inc., manufactures and sells two products: Product J8 and Product G2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct J8900 9.0 8,100 Product G21,000 12.0 12,000 Total direct labor-hours 20,100 The direct labor rate is $26.90 per DLH. The direct materials cost per unit is $217.20 for Product J8 and $139.60 for Product G2.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product J8Product
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Data concerning three of Kilmon Corporation's activity cost pools appear below:?Activity Cost PoolsEstimated Overhead CostExpected Activity?Assembling products$150,3008,350 assembly hours?Designing products$1,177,5357,597 product design hours?Setting up batches$14,400600 batch set-upsRequired:Compute the activity rates for each of the three cost pools. Show your work!
What will be an ideal response?