Which of the following would lengthen the operating cycle? Faster collection of

Question

Which of the following would lengthen the operating cycle? Faster collection of accounts receivables. Selling inventory in a shorter period of time Increasing the number of customers who paid cash. Relaxing credit terms and allowing customers more time to pay. Smith Corporation has provided the following information: Cash sales totaled $125.000. Credit sales totaled $279.000. Cash collections from customers for services yet to be provided totaled $38,000. An SI 1.000 gain from the sale of property and equipment occurred. Interest income touted $7.700. Mow much were Smith's operating revenues? During 2014. sense Corporation incurred operating expenses amounting to $100.000 of vs which $75.000 was paid in cash; the balance will be paid during 2015. Which of the following is correct for the 2014 year-end balance sheet? Stockholders' equity decreases $75,000 and assets decrease $75.000. Assets decrease $I00.000 and stockholders' equity decreases $100,000. Assets decrease $I00.000. liabilities increase $25.000. and stockholders' equity decreases $100.000. Stockholders' equity decreases $100,000. assets decrease $75.000. and liabilities increase $25.000.

Explanation / Answer

1 Relaxing credit terms and allowing customrs more time to pay. 2 Answer is A= 404000 Cash Sales Totaled 125000 Credit Sales totaled 279000 Operating Ravenue 404000 3 Answer is D Stock holder's Equity decreases $100000 , assets decreases $ 75000, and Liabilities increases $25000 Expenses incurred 100000 = Stock Holder's Equity Increases Cash Paid 75000 Assets decreases Outstanding Amount 25000 Liabilities Increases

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