Question
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 operating
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 operating cycle.
Round the answers to two decimal places
Balance Sheet December 11, 2022
Cash and marketable securities | $112,000 |
| |
Accounts receivable | $325,000 |
| |
Inventories | $426,000 |
| |
Prepaid expenses | $10,700 |
| |
Total current assets | $873,700 |
| |
Gross fixed assets | $1,514,000 |
| |
Less: accumulated depreciation | $315,000 |
| |
Net fixed assets | $1,199,000 |
| |
Total assets | $2,072,700 |
| |
Accounts payable | $211,000 | ||
Notes payable | $51,500 | ||
Accrued expenses | $50,100 | ||
Total current liabilities | $312,600 | ||
Long-term debt | $225,000 | ||
Par value and paid-in-capital | $117,000 | ||
Retained Earnings | $1,418,100 | ||
Common Equity | 1,535,100 | ||
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 |
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