I'm unsure how to solve for number 7
E. 501.375) Answer: ( D ) 7. Financial statement analysis: Westchester Company's comparative balance sheets (Year 8 and Year 9] are presented below. Compute the number of days the company is expected to take. in order to turn the inventory into cash. ( 60.23 )days 8. a. What is the amount of cash flows from operating activities?$28.000 b. What is the amount of cash ows from investing activities? $8,000 c. What is the amount of cash ows from nancing activities? 618,000 EB BB Assets Cash $12,000 $10,000 Accounts receivable .......... 20.000 24,000 Inventory .................................................... 36,000 30,000 Totalcurrent assets 68,000 64,000 Long-terminvestments\".................................. 18,000 20,000 Plant and equipment....................................... 60,000 $0,000 Less: Accumulated depreciation,.,.,,.,..,.,,.,..,., [26 0001 (22,000! Netplantandcquipmcnt.....\"mm..................... 34000 28,000 TolalAssets $120,000 $112,000 Liabilities and Stockholders' Equity Accountspayable.......................................... $32,000 $20,000 Accruedliabilities.......................................... 8,000 10,000 Total current liabilities........................mm... 40,000 30,000 Bondpayable............................................... 14,000 28,000 Common stock 30,000 26,000 Retained earnings 36,000 28,000 Total Stockholders' Equity 66,000 54,000 Total Liabilities and Equtty 120,000 112,000 Sales $260,000 Cost ofgoods sold ............... 200000 Gross margin .................................................. 60,000 Operating expenses 44,000 Net income ................................................... ii 16,000 Additional information: The company paid cash dividends. 9. Why is \"Mark-to-market accounting" a meaningful topic? Please focus your answer on the balance sheet presentation. Answer: \"Mark-market accounting" is a meaningful topic because marble-market adjustments impact firm value. As, mark-to-rnarket adjustments are useful for investors and creditors, because they Show the fair value of'eompanies' trading and available for sale securities. Thus, these adjustments show the associated gains & losses of the securities Also, heldtomaturity securities are recorder at amortized cost, which it the historical cost minus accumulated depreciation, depletion, and impairment cost. Therefore, investors and creditors can see the gainfloss the company would take if it was to sell its held-to-maturity securities. [0. Do you think \"Contributed Capital" is affected by treasury stock transactions? Why? Why not? Answer: Yes, Contributed Capital is affected by treasury stock transactions. Because if the company purchases some of its own shares of stock {Purchasing Treasury Stock), and then sells this previously acquired treasury stock at a higher price, the difference of the proceeds (Purchase Price per stock Sale Price per stock) goes directly to stockholders' equity in the contributed capital section. Note: the company can also sell this treasury stock at cost or below cost, and it will have to record the associated proceeds in the same manner. 11. GWD. Inc.. a manufacturer of two products. P and O. has 3.000 machine hours
