a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $30. All of the companys sales are on account

Required:

Accounts receivable turnover. (Assume that all sales are on account.)

Average collection period

Inventory turnover.

Average sale period

Operating cycle

Total asset turnover

Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $78,585 $ 65,000 Cost of goods sold 38,100 38,000 Gross margin 40,485 27,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,300 7,100 10,700 6,300 Total selling and administrative expenses 18,400 17,000 Net operating income Interest expense 22,085 810 10,000 810 Net income before taxes Income taxes 21,275 8,510 9,190 3,676 Net income Dividends to common stockholders 12,765 280 5,514 700 Net income added to retained earnings Beginning retained earnings 12,485 35,454 4,814 30,640 Ending retained earnings $ 47,939 $35,454 Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,170 10,300 13,800 710 $ 1,270 6,600 11,600 570 Total current assets 25,980 20,040 Property and equipment: Land Buildings and equipment, net 9,400 45,819 9,400 38,664 Total property and equipment 55,219 48,064 Total assets $81,199 $68,104 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19,400 $ 18,900 920 810 140 140 20,460 19,850 Total current liabilities Long-term liabilities: Bonds payable 8,100 8,100 Total liabilities 28,560 27,950 Stockholders' equity: Common stock Additional paid-in capital 700 4,000 700 4,000 Total paid-in capital Retained earnings 4,700 47,939 4,700 35,454 Total stockholders' equity 52,639 40,154 Total liabilities and stockholders' equity $81,199 $ 68,104