Skullcandy designs, markets, and distributes audio and gaming headphones, earbuds, and speakers. assume that last year skullcandy reported cost of goods sold of $158 million. assume that this year cost of goods was $117 million. accounts payable was $23 million at the end of last year and $17 million at the end of this year. required: 1. for this year, compute the average number of days that skullcandy’s accounts payable are outstanding.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Retail industry fundamentals credential exam,part 1 all answers