Blossom Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Blossom Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $417,400 776,400 681,000 247,000 2,121,800 8,440,100 $11,216,470 $10,561,900 $352,000 1,000,000 717,000 381,300 2,450,300 8,766,170 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liablities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings $3,155,000 $2,846,000 3,892,600 6,738,600 58,900 103,800 3,660,600 3,823,300 3,702,600 6,857,600 58,900 104,600 4,195,370 4,358,870 Total stockholders' equity Total liabilities and stockholders' equity $11,216,470$10,561,900 Blossom Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net Income before taxes Income taxes (30%) Net income Dividends paid $10,177,200 $9,613,900 5,293,700 4,315,200 2,634,100 1,681,100 308,600 1,372,500 411,750 S960,750 5,611,600 4,565,600 2,840,200 1,725,400 300,300 1,425,100 427,530 $997,570 29,450 413,000 442,450 518,300 3,142,300 $4,195,370 $3,660,600 29,450 433,350 462,800 534,770 3,660,600 Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year (a-d) Your answer is partially correct. Try again. Calculate the following liquidity ratios for 2016. (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.) 704700 a. Working capital 0.78 b. Current ratio 0.56 c.Acid-test ratio 6.32 times d. Accounts receivable turnover Click if you would like to Show Work for this question: Open Show Work Your answer is correct Calculate the following liquidity ratios for 2016. (Round average collection period to O decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) 31 a. Average collection period b. Inventory turnover Click if you would like to Show Work for this question: days 8.0 times Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEX LINK TO VIDEO Attempts: 2 of 3 used (g) Calculate average days to sell inventory for 2016. (Round answer to O decimal places, e.g. 25. Use 365 days for calculation) Average days to sell Inventory days