Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate the
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, and using a 365-day year, calculate the average collection period (also called Days of Sales in Receivables or Number of Days of Credit).
Round the answers to two decimal places
Balance Sheet December 31, 2013
Cash and marketable securities | $112,000 | Accounts payable | $211,000 |
Accounts receivable | $325,000 | Notes payable | $51,500 |
Inventories | $426,000 | Accrued expenses | $50,100 |
Prepaid expenses | $10,700 | Total current liabilities | $312,600 |
Total current assets | $873,700 | Long-term debt | $225,000 |
Gross fixed assets | $1,514,000 | Par value and paid-in-capital | $117,000 |
Less: accumulated depreciation | $315,000 | Retained Earnings | $1,418,100 |
Net fixed assets | $1,199,000 | Common Equity | 1,535,100 |
Total assets | $2,072,700 | Total liabilities and owners equity | $2,072,700 |
Income Statement, Year of 2013
Net sales (all credit) | $3,256,600.00 |
Less: Cost of goods sold | $2,572,714.00 |
Selling and administrative expenses | $323,000.00 |
Depreciation expense | $115,000.00 |
EBIT | $245,886.00 |
Interest expense | $29,600.00 |
Earnings before taxes | $216,286.00 |
Income taxes | $86,514.40 |
Net income | $129,771.60 |
ANSWER:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started