QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

48. Selected information from a company’s recent income statement and balance sheets is presented below. Selected Income Statement Datafor the year ended December 31st (Can $ thousands)2011Sales $2,240,000Cost of goods sold 1,320,000Gross profit 920,000Net Income $316,600Selected Balance Sheet Data as of December 31st2011 2010AssetsCash & investments $210,700 $191,600Accounts receivable 212,800 201,900Inventories 63,000 71,500Total current assets $486,500 $465,000LiabilitiesAccounts payable $129,600 $157,200Other current liabilities 130,700 182,700Total current liabilities $260,300 $339,900The company operates in an industry in which suppliers offer terms of 2/10, net 30. The payables turnover for the average company in the industry is 8.5 times. Which of the following statements is most accurate? In 2011, the company on average: A. took advantage of early payment discounts. B. paid its accounts within the payment terms provided. C. paid its accounts more promptly than the average firm in the industry.