ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Balance Sheet. As of December 31 50,000 100,000 200,000 650,000 1,000,000 100,000 90,000 250,000 100,000 50,000 410,000 1,000,000 Total liabilities and stockholders' equity MARNI COMPANY Income Statement For the year ended December 31. Sales (all on credit) $ 2,000,000 Cost of goods sold 1,750,000 Gross profit 250,000 Sales and administrative 30,000 expenses Fixed lease expenses Depreciation Operating profit Interest expense 10,000 60,000 $ 150,000 25,000 Profit before taxes $ 125,000 Taxes (40%) Net income 50,000 $ 75,000 Refer to the tables above. The firm's average collection period is, assuming a 360-day calendar. 277 days 18 days 5.6 days 20 days