At december 31, 2018, stacy mcgill corporation reported current assets of $370,000 and current liabilities of $200,000. the following items may have been recorded incorrectly: goods purchased costing $22,000 were shipped f. o.b. shipping point by a supplier on december 28. mcgill received and recorded the invoice on december 31, 2018, but the goods were not included in mcgill’s physical count of inventory. goods purchased costing $15,000 were shipped f. o.b. destination by a supplier on december 26. mcgill received and recorded the invoice on december 31, but the goods were not included in mcgill’s 2018 physical count of inventory because they were not received until january 2, 2019.. goods held on consignment from claudia kishi company were included in mcgill’s december 31, 2018 physical count of inventory at $13,000. freight-in of $3,000 was debited to advertising expense on december 28, 2018. required: a) compute the current ratio based on mcgill's balance sheet. b) recompute the current ratio after corrections are made. c) by which amount will income (before taxes) be adjusted up or down as a result of the corrections

Risk is the risk of a decline in a bond's value due to an increase in interest rates. this risk is higher on bonds that have long maturities than on bonds that will mature in the near future. risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. this risk is obviously high on callable bonds. it is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. which type of risk is more relevant to an investor depends on the investor's , which is the period of time an investor plans to hold a particular investment. longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. to account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called , which is the weighted average of the time it takes to receive each of the bond's cash flows. conceptual question: which of the following bonds would have the largest duration? a)10year-zero coupon bonds b)10year-7% annual coupon bonds c)10year-3% annual coupon bonds d)5year-3% annual coupon bonds e)3year-7% annual coupon bonds