act quiz 22
Long-term debt increased from the prior year, but total interest expense decreased as a percentage of long-term debt.
Portions of existing long-term debt were refinanced at lower interest rates Short-term borrowings were refinanced on a long-term basis at lower interest rates.
The dollar amount of operating income is consistent with the prior year although the entity was more profitable on a net income basis.
Portions of existing long-term debt were refinanced at lower interest rates. The effective tax rate decreased, as compared to the prior year. Short-term borrowings were refinanced on a long-term basis at lower interest rates.
The allowance for obsolete inventory increased from the prior year, but the allowance as a percentage of inventory decreased from the prior year.
Shipments of inventory sold prior to year end were included in the client's inventory counts as of the balance sheet date.; The client purchased a large block of inventory on account close to year end.
The quick ratio decreased from the prior year, although the amount of cash and net accounts receivable is almost the same as the prior year.
The client purchased a large block of inventory on account close to year end.