Go back to the GCP illustration at the beginnings of the chapter. (attached is the issustration and pages). Assume the collection and payment patterns of both GCP and its customers do not change. (a) Construct the balance sheet for GCP at the close of business on Day 31. Remember, the employee's salaries will have been paid at the beginnings of the day for the previous 15 days of salaries they have worked, so accrued wages will include only one day of salaries (Day 31). (b) How long will it take GCP to pay off the bank loan it took out on Day 16 if the daily cash profits are used to repay the loan? Ignore any interest costs.
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