2. Cheeseburger and Taco Company purchases 13,461 boxes of cheese each year. It costs $15 to place and ship each order and $9.21 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Calculate Economic Order Quantity.

Round answer to the nearest whole number.

3. Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate operating cycle.

Round the answers to two decimal places.

Balance Sheet December 31, 2015 Cash and marketable $187,000 Accounts payable $217,000 securities Accounts $498,000 Notes payable $51,500 receivable Inventories $799,000 Accrued expenses $58,300 Prepaid expenses $19,300 Total current $326,800 liabilities Total current $1,503,300 Long-term debt $215,400 assets Gross fixed assets $1,978,000 Par value and $128.000 paid-in-capital Less: accumulated depreciation $478,000 Retained Earnings $2,333,100 Net fixed assets $1,500,000 Common Equity 2,461,100 Total liabilities Total assets $3,003,300 and owner's $3,003,300 equity Income Statement, Year of 2015 Net sales (all credit) $5,386,600.00 Less: Cost of goods $3,716,754.00 $329,000.00 sold Selling and administrative expenses Depreciation expense EBIT Interest expense Earnings before taxes Income taxes Net income $138,000.00 $1,202,846.00 $39,600.00 $1,163,246.00 $465,298.40 $697,947.60