Current liabilities will vary directly with sales


Owen's Electronics has 9 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.

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Accounting Basics: Current liabilities will vary directly with sales
Reference No:- TGS071712

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