Annual ReportAnnual Report Chester F$147426$ Round: $0$Dec. $31,2024$ Balance SheetDEFINITIONS: CommonSize: The common size columnsimply represents each item as a percentage of totalassets for that year. Cash: Your end$-$of$-$year cashposition. Accounts Receivable: Reflects the lag betweendelivery and payment of your products. Inventories: Thecurrent value of your inventory across all products. A zeroindicates your company stocked out. Unmet demandwould, of course, fall to your competitors. Plant &Equipment: The current value of your plant. AccumDeprec: The total accumulated depreciation from yourplant. Accts Payable: What the company currently owessuppliers for materials and services. Current Debt: Thedebt the company is obligated to pay during the next yearof operations. It includes emergency loans used to keepyour company solvent should you run out of cash duringthe year. LongTerm Debt: The companys long term debtis in the form of bonds, and this represents the total valueof your bonds. CommonStock: The amount of capitalinvested by shareholders in the company. RetainedEarnings: The profits that the company chose to keepinstead of paying to shareholders as dividends. ASSETS Cash $$5,602$ Account Receivable $$3,353$ Inventory $$2,352$ Total Current Assets $$11,307$ Plant & Equipment $$14,400$ Accumulated Depreciation $($$$4,800)$ Total Fixed Assets $$9,600$ Total Assets $$20,907$ LIABILITIES & OWNERS EQUITY Accounts Payable $$2,853$ Current Debt $$0$ Long Term Debt $$5,200$ Total Liabilities $$8,053$ Common Stock $$2,323$ Retained Earnings $$10,531$ Total Equity $$12,854$ Total Liab. & O$.$ Equity $$20,907$ Cash Flow StatementThe CashFlow Statement examines what happened in the Cash Accountduring the year. Cash injections appear as positive numbers and cashwithdrawals as negative numbers. The Cash Flow Statement is an excellenttool for diagnosing emergency loans. When negative cash flows exceedpositives, you are forced to seek emergency funding. For example, if salesare bad and you find yourself carrying an abundance of excess inventory,the report would show the increase in inventory as a huge negative cashflow. Too much unexpected inventory could outstrip your inflows, exhaustyour starting cash and force you to beg for money to keep your companyafloat. Cash Flows from Operating Activities $2024$ Net Income$($Loss$)$ $$2,494$ Depreciation $$960$ Extraordinary gains$/$losses$/$writeoffs $$0$ Accounts Payable $$853$ Inventory $($$$2,352)$ Accounts Receivable $$3,647$ Net cash from operation $$5,602$ Cash Flows from Investing Activities Plant Improvements $$0$ Cash Flows from Financing Activities Dividends paid $($$$1,000)$ Sales of common stock $$0$ Purchase of common stock $$0$ Cash from long term debt $$0$ Retirement of long term debt $$0$ Change in current debt$($net$)$ $$0$ Net cash from financing activities $($$$1,000)$ Net change in cash position $$4,602$ Closing cash position $$5,602$Annual Report Page $1$Annual Report Chester F$147426$ Round: $0$Dec. $31,20242024$ Income Statement $($Product Name$)$ Cake $2024$TotalCommonSize Sales $$40,800$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$40,800100\mathrm{.}0\%$ Variable Costs: Direct Labor $$12,138$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$12,13829\mathrm{.}8\%$ Direct Material $$20,227$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$20,22749\mathrm{.}6\%$ Inventory Carry $$282$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$2820\mathrm{.}7\%$ Total Variable $$32,647$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$32,64780\mathrm{.}0\%$ Contribution Margin $$8,153$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$8,15320\mathrm{.}0\%$ Period Costs: Depreciation $$960$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$9602\mathrm{.}4\%$ SG&A: R&D $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$00\mathrm{.}0\%$ Promotions $$1,000$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$1,0002\mathrm{.}5\%$ Sales $$1,000$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$1,0002\mathrm{.}5\%$ Admin $$637$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$6371\mathrm{.}6\%$ Total Period $$3,597$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$3,5978\mathrm{.}8\%$ Net Margin $$4,556$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$0$ $$4,55611\mathrm{.}2\%$Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the productthat was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated onstraight$-$line. $15-$year depreciation of plant value. R&D Costs: R&D department expenditures for eachproduct. Admin: Administration overhead is estimated at $1\mathrm{.}5\%$ of sales. Promotions: The promotion budgetfor each product. Sales: The sales force budget for each product. Other: Chargs not included in othercategories such as Fees, Write offs, and TQM$.$ The fees include money paid to investment bankers andbrokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write$-$offsinclude the loss you might experience when you sell capacity or liquidate inventory as the result ofeliminating a production line. If the amount appears as a negative amount, then you actually made moneyon the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest:Interest expense based on last years current debt, including short term debt, long term notes that havebecome due, and emergency loans, LongTerm Interest: Interest paid on outstanding bonds. Taxes:Income tax based upon a $35\%$ tax rate. Profit Sharing: Profits shared with employees under the laborcontract. Net Profit: EBIT minus interest, taxes, and profit sharing. Other $$00\mathrm{.}0\%$ EBIT $$4,55611\mathrm{.}2\%$ Short Term Interest $$00\mathrm{.}0\%$ Long Term Interest $$6411\mathrm{.}6\%$ Taxes $$1,3703\mathrm{.}4\%$ Profit Sharing $$510\mathrm{.}1\%$ Net Profit $$2,4946\mathrm{.}1\%$

What is receivables turnover ratio?