1. Compute the Days Sales Uncollected Ratio

\begin{tabular}{|l|c|} \hline \multicolumn{2}{|c|}{ INCOME STATEMENT } \\ \hline \multicolumn{1}{|c|}{ GROSS PROFIT } & $2,486,000 \\ \hline Net sales & 1,523,000 \\ \hline Cost of goods sold & 963,000 \\ \hline & \\ \hline Operating Expenses: & $145,000 \\ \hline Advertising expense & 240,000 \\ \hline Sales salaries expense & 165,000 \\ \hline Office salaries expense & 100,000 \\ \hline Insurance expense & 26,000 \\ \hline Supplies expense & 85,000 \\ \hline Depreciation expense & 17,000 \\ \hline Miscellaneous expenses & $778,000 \\ \hline Total Operating Expenses & 185,000 \\ \hline & 44,000 \\ \hline \multicolumn{1}{|c|}{ Less interest expense } & 141,000 \\ \hline Profit before taxes & 47,000 \\ \hline Income taxes & 94,000 \\ \hline \end{tabular} BALANCE SHEET \begin{tabular}{|l|c|} \hline ASSETS: & \\ \hline Current Assets: & \\ \hline Cash & $79,000 \\ \hline Investment & 65,000 \\ \hline Accounts receivable & 120,000 \\ \hline Inventory & 250,000 \\ \hline \multicolumn{1}{|c|}{ TOTAL CURRENT ASSETS } & 514,000 \\ \hline TOTAL ASSETS & \\ \hline Land & \\ \hline Store equipmerty, Plant and Equipment) & $100,000 \\ \hline Office equipment & 400,000 \\ \hline Buildings & 45,000 \\ \hline TOTAL PPE (Property, Plant and Equipment) & $1,117,000 \\ \hline & $1,684,000 \\ \hline & \\ \hline LIABILTIES: & \\ \hline Current liabilities: & \\ \hline Accounts payable & $164,000 \\ \hline Current notes payable & 75,000 \\ \hline Taxes payable & 26,000 \\ \hline & 265,000 \\ \hline TOTAL CURRENT LIABILITES & \\ \hline TOTAL LIABLITIES LIABILTIES \& EQUITY & \\ \hline Non-Current liabilities: & 1,684,000 \\ \hline Notes payable & \\ \hline & $600,000 \\ \hline & \\ \hline EQUITY: & \\ \hline Contributed capital: & \\ \hline Common shares & \\ \hline Retained Earnings & \\ \hline Total Equity & \\ \hline & 000,000 \\ \hline & \\ \hline \end{tabular}