5 of 8 > 7.33/8 View Policies Show Attempt History Current Attempt in Progress Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Cullumber Medical Comparative Balance Sheet As of December 31 Assets 2020 2019 Current assets Cash $390,000 $417,450 Accounts receivable, net 1,038,000 776,450 Inventory 746,000 681,100 Other current assets 381,350 247,050 Total current assets 2,555,350 2,122,050 Property, plant, & equipment, net 8,702,200 8,439,880 Total assets $11,257,550 $10,561,930 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities $3,196,000 $2,846,100 3,702,700 3,892,600 6,898,700 6,738,700 III Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,200 $9,613,950 Cost of goods sold 5,611,600 5,298,700 Gross profit 4,565,600 4,315,250 Operating expenses 2,840,200 2,634,200 Net operating income 1,725,400 1,681,050 Interest expense 300,300 308,650 Net income before taxes 1,425,100 1,372,400 Income taxes (30%) 427,530 411,720 Net income $997,570 $960,680 Dividends paid Preferred dividends 29,450 29,550 Common dividends 433,400 413,000 Total dividends paid 462,850 442,550 Net income retained 534,720 518,130 Retained earnings, beginning of year 3,660,530 3,142,400 Retained earnings, end of year $4,195,250 $3,660,530 (a-d) Your answer is partially correct. (a-d) Your answer is partially correct. Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a. Working capital b. Current ratio c. Acid-test ratio -640650 0.79 0.57 11.21 d. Accounts receivable turnover times eTextbook and Media Save for Later (e-f) Your answer is correct. Attempts: 2 of 3 used Submit Answer Calculate the following liquidity ratios for 2020. (Round average collection period to O decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period 32.53 days