A B 1 Hamilton's 2 Income Statement 3 For The Year Ended December 31, 2020 4 2020 5 Sales revenues $ 38,325,000 6 Less: Cost of goods sold 21,710,000 7 Gross profit $ 16,615,000 8 Less: Operating expenses 5,083,270 9 Operating income $ 11,531,730 10 Less: Interest expense 217,400 11 Income before income taxes 12 Less: Income tax expense $ 11,314,330 1,925,750 13 Net income $ 9,388,580 1 B Hamilton's Balance Sheets December 31, 2020 and 2019 2 3 4 2020 2019 5 Assets 6 Current assets: 7 Cash $ 820,000 1,210,000 $ 206,000 8 Short-term investments 9 Accounts receivable 10 Inventory 100,400 4,630,000 264,000 294,200 4,100,000 11 Other current assets 403,500 12 Total current assets 13 Other noncurrent assets 14 Total assets 15 500,000 $ 6,646,400 $ 12,900,000 $ 19,546,400 $ 5,881,700 11,630,000 17,511,700 16 Liabilities 17 Current liabilities: 18 Accounts payable 19 Notes payable $ 3,100,000 $ 905,000 2,950,000 645,000 20 Accrued liabilities 415,000 55,000 21 Total current liabilities $ 4,420,000 $ 3,650,000 4,298,000 4,215,000 $ 8,718,000 $ 7,865,000 22 Long-term liabilities 23 Total liabilities 24 25 Stockholders' equity 26 Common stock, no par 27 Retained earnings 28 Total stockholders' equity 29 3,000,000 $ 2,509,000 $ 8,319,400 $ 10,828,400 $ 6,646,700 9,646,700 30 Total liabilities and equity $ 19,546,400 $ 17,511,700 Hamilton's, a home-improvement store chain, reported these summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Compute the following: a. The rate of inventory turnover for 2020. b. Days' sales in average receivables during 2020. Assume all sales are on credit. a. Compute the rate of inventory turnover for 2020. First enter the formula, then compute the inventory turnover for 2020. (Round your answer to two decimal places. Inventory turnover Average accounts receivable Average inventory Cost of goods sold Current assets Current liabilities H Days in year t more help Media