1. Calculate ACMEs Average Collection Period in Days on its Accounts Receivable for 2016 (assume all sales are made on credit). (show calculation; round to one decimal place)

1. 2016:

2. If the companys credit terms to its customers is net 30, is ACME happy with its Average Collection Period? (Explain why or why not)

Final Project Final Project ACME Company Statement of Shareholders' Equity For the Year Ended December 31, 2016 and 2015 ACME Company Balance Sheet At December 31, 2016 2015 Common Stock $500,000 Additional Paid-in Capital $1,260,000 December 31, 2014 balance Net Income Cash dividends December 31, 2015 balance Retained Earnings $775,000 321,000 (60,000) $1,036,000 Total $2,535,000 321,000 (60,000) $2,796,000 ASSETS: Cash Accounts Receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets $48,000 214.000 (15 000) 635 000 36.000 918,000 $44,000 183,000 (24.000) 445.000 59.000 707,000 $500,000 $1,260,000 Net income Cash dividends December 31, 2016 balance 228,000 (50,000) 311212. 228,000 (50,000) YAZAR 350.oto 12 to Land Buildings and machinery Less: Accumulated depreciation Total property, plant and equipment 450,000 2,400.000 (285,000) 2,565,000 370,000 2.320.000 (240,000) 2,450,000 Patents, net of amortization 148,000 181,000 ACME Company Income Statement For the Year Ended December 31, Total assets sk. k ilo kaklololo Sales Cost of goods sold Gross profit 2016 $2,500,000 1,350,000 1,150,000 2015 S2 220.000 1.260.000 960,000 LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts payable Other accrued liabilities Total current liabilities $36,000 21,000 57,000 $22.000 30,000 52,000 Selling and administrative expenses Bad debt expense Depreciation expense Operating income 535,000 13,000 45,000 557,000 520,000 11,000 35.000 394,000 Long-term debt Total liabilities 600,000 657,000 490,000 542,000 Common stock (250,000 shares issued & outstanding all years) Additional paid-in capital Retained earnings Total shareholders' equity 500,000 1.260.000 1,214,000 2,974,000 500,000 1,260,000 1,036,000 2.796,000 Interest expense Other gains (losses) Net income before taxes Income tax expense Net income (75,000) (156,000) 326,000 98,000 $278.000 (84.000) 149.000 459.000 138.000 SK21000 Total liabilities and shareholders' equity 5616 3 .000000 ACME Company Statement of Cash Flows (abbreviated) For the Year Ended December 31, 2016 Net cash from operating activities $54,000 Net cash used by investing activities (160,000) Net cash from financing activities 110.000 Increase in cash Beginning cash balance 44,000 Ending cash balance 2015 $32,000 (75,000) 50,000 37.00 do 7.000