Balance Sheet Cash Accounts Receivables Inventories 2015 2016 $50,000 $50,000 200,000 300.000 450,000 570.000 700.000 920,000 300.000 380.000 $1,000,000 $1,300.000 Total Current Assets Fixed Assets, Net Total Assets Accounts Payable 130.000 $180.000 Accruals Bank Loan Total Current Liabilities Long-Term Debt 50,000 70.000 90.000 90,000 270,000 340,000 400,000 550,000 50,000 50.000 200.000 200,000 80,000 160,000 $1,000,000 $1.300.000 Common Stock ($.05 par) Additional Paid-in-Capital Retained Earnings Total Liab. & Equity Income Statement Net Sales 2015 2016 $1,300,000 $1.600.000 780.000 960.000 520.000 640,000 160,000 Cost of Goods Sold Gross Profit Marketing General & Administrative Depreciation EBIT 130,000 150,000 150,000 40.000 55,000 275,000 200.000 Interest 45.000 55.000 155,000 220.000 Earnings Before Taxes Income Taxes (40% rate) 62.000 88.000 Net Income $93,000 $132.000 16. Calculate the inventory-to-scie, sale-to-cosh, and purchase-to-payment conversion periods for Munich Exports for 2016. 1. Inventory-to-Sale Conversion Period Average Inventories / (Cost of Goods Sold/365) = = 2. Sale-to-Cash Conversion Period - Average Receivables /(Net Sales/365) 3. Purchase-to-Payment Conversion Period = (Average Payables + Average Accrued Liabilities) / (Cost of Goods Sold/365) Hint: Divide by the 2016 year