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Balance Sheet December 31, Year 2 and Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant & equipment,
Balance Sheet December 31, Year 2 and Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, $5 par value: Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity Income Statement For the Year Ended December 31, Year 2 Sales (all on account) $ 1,370,000 Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (35%) Net income 850,000 520,000 482,692 37,308 21,000 16,308 5,708 $ 10,600 Year 2 Year 1 $ 227,000 134,000 150,000 83,000 594,000 769,000 $ 1,363,000 $ 150,000 130,000 130,000 80,000 490,000 840,000 $ 1,330,000 $ 200,000 63,000 $ 180,000 70,000 71,000 60,000 334,000 310,000 290,000 290,000 624,000 600,000 400,000 400,000 50,000 50,000 289,000 280,000 739,000 730,000 $ 1,363,000 $ 1,330,000 Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share The company's average collection period for Year 2 is closest to: (Round your Intermediate calculations to 2 decimal places.) Murple Choice 357 days 11 days 10 days 35.2 days
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