Analysis of Activity Measures Based on the comparative income statement and balance sheet of Cowan Kitchen Counters, Inc., that follow: Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) $2,590,300 $2,164,600 Cost of goods sold 1,852,700 1,617,000 Gross profit $737,600 $ 547,600 Operating expenses 316,100 212,000 Other expense (interest) 24,200 24,200 Income tax expense 175,700 108,000 Net income $221,600 $203,400 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Cash $259,200 $241,600 Government notes 249,400 249,400 Accounts receivable (net) 906,600 797,200 Merchandise inventory 979,700 915,100 Supplies and prepayments 147,100 46,900 Land 106,500 106,500 Building (net) 328,500 391,500 Supplies and prepayments 147,100 46,900 Land 106,500 106,500 Building (net) 328,500 391,500 Office equipment (net) 17,600 15,100 Total assets $2,994,600 $2,763,300 Current liabilities (accounts payable) $705,800 $533,700 Bonds payable 220,000 240,000 Total liabilities $925,800 $773,700 Common stock (10 par, 180,000 shares) $1,800,000 $1,800,000 Retained earnings 268,800 189,600 Total stockholders' equity $2,068,800 $1,989,600 Total liabilities and stockholders' equity $2,994,600 UngageNOWv2 | Online teaching and learning resource from Cam $2,763,300 Compute the following activity measures for 20-2 (round all calculations to two decimal places): Use 365 days when computing the accounts receivable and merchandise Inventory turnover. a. Accounts receivable turnover 3.04 X days b. Merchandise inventory turnover 1.96 X days c. Asset turnover 0.90 to 1