Blossom Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2019 and 2020 follow.

Blossom Medical Comparative Balance Sheet As of December 31
		2020		2019
Assets
Current assets
Cash		$352,000		$417,400
Accounts receivable, net		1,000,000		776,400
Inventory		717,000		681,000
Other current assets		381,300		247,000
Total current assets		2,450,300		2,121,800
Property, plant, & equipment, net		8,766,170		8,440,100
Total assets		$11,216,470		$10,561,900
Liabilities and Stockholders Equity
Current liabilities		$3,155,000		$2,846,000
Long-term debt		3,702,600		3,892,600
Total liabilities		6,857,600		6,738,600
Preferred stock, $5 par value		58,900		58,900
Common stock, $0.25 par value		104,600		103,800
Retained earnings		4,195,370		3,660,600
Total stockholders equity		4,358,870		3,823,300
Total liabilities and stockholders equity		$11,216,470		$10,561,900

Blossom Medical Comparative Income Statement and Statement of Retained Earnings For the Year
		2020		2019
Sales revenue (all on account)		$10,177,200		$9,613,900
Cost of goods sold		5,611,600		5,298,700
Gross profit		4,565,600		4,315,200
Operating expenses		2,840,200		2,634,100
Net operating income		1,725,400		1,681,100
Interest expense		300,300		308,600
Net income before taxes		1,425,100		1,372,500
Income taxes (30%)		427,530		411,750
Net income		$997,570		$960,750
Dividends paid
Preferred dividends		29,450		29,450
Common dividends		433,350		413,000
Total dividends paid		462,800		442,450
Net income retained		534,770		518,300
Retained earnings, beginning of year		3,660,600		3,142,300
Retained earnings, end of year		$4,195,370		$3,660,600

(a-d)

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• Correct Answer

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Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.)

a.	Working capital		$
b.	Current ratio
c.	Acid-test ratio
d.	Accounts receivable turnover			times

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(e-f)

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Calculate the following liquidity ratios for 2020. (Round average collection period to 0 decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.)

a.	Average collection period		days
b.	Inventory turnover		times

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(g)

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Calculate average days to sell inventory for 2020. (Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.)

Average days to sell inventory

days