Summary balance sheet data for Greener Gardens Co.is shown below (in thousands of dollars).The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons:

From this data we may conclude that

Question

Summary balance sheet data for Greener Gardens Co.is shown below (in thousands of dollars) .The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons:

From this data we may conclude that

Quizplus · Accepted Answer

The peak and off-peak data suggest that Greener Gardens follows a conservative approach to current asset financing, as some of its short-term needs are met by permanent capital. The company maintains a relatively stable level of current assets throughout the year, indicating that it does not rely solely on short-term financing to support its operations during the peak season. Without income statement data, we cannot determine the impact of the company's financing policy on profitability, and without cash flow data, we cannot assess the sustainability of the policy. The data do not suggest that Greener Gardens matches asset and liability maturities, as the company has a significant amount of long-term debt that does not coincide with the seasonal nature of its operations.

Summary Balance Sheet Data for Greener Gardens Co