Refer to the information in Exercise 13 about Mixon Company. The companys income statements for the years

Refer to the information in Exercise 1–3 about Mixon Company. The company’s income statements for the years ended December 31, 2006 and 2005 show the following:

Required:
For the yearsendedDecember31, 2006 and2005, assume allsalesare oncredit andthencompute the following:
(a) Collection period,
(b) Accounts receivable turnover,
(c) Inventory turnover, and
(d) Days’ sales in inventory. Comment on the changes in the ratios from 2005 to2006

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2006 2005 $672,500 $530,000 Sales Cost of goods sold Other operating expenses Interest expense .. Income taxes. Total costs and expenses Net income $410,225 208,550 11,100 8,525 $344,500 133,980 12,300 7,845 (638,400) 34,100 2.10 (498,625) 31,375 $1.93 Earnings per share...a...