Excluding a short-term obligation from current liabilities can be done when:- a. the liability is contractually due to be settled more than one year after the balance sheet date.
b. the company enters into a financing agreement that permits the company to refinance the debt on a long-term basis.
c. the company has a contractual right to defer settlement of the liability for at least one year after the balance sheet date.
d. all of these answers are correct.

Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44