Crowley Building Supply sells various building materials to retail outlets. The company has just approached Sycamore State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The companys financial statements for the most recent two years follow:

Crowley Building Supply
Comparative Balance Sheets
	This Year		Last Year
Assets
Current assets:
Cash	$	59,500	$	144,500
Marketable securities		4,500		22,500
Accounts receivable, net		482,000		294,000
Inventory		951,680		591,590
Prepaid expenses		22,500		29,500
Total current assets		1,520,180		1,082,090
Plant and equipment, net		1,647,620		1,552,580
Total assets	$	3,167,800	$	2,634,670
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	812,000	$	451,000
Bonds payable, 8%		619,500		619,500
Total liabilities		1,431,500		1,070,500
Stockholders' equity:
Preferred stock, $25 par, 7%		324,000		324,000
Common stock, $10 par		516,000		516,000
Retained earnings		896,300		724,170
Total stockholders' equity		1,736,300		1,564,170
Total liabilities and stockholders' Equity	$	3,167,800	$	2,634,670

Crowley Building Supply
Comparative Income Statement and Reconciliation
	This Year		Last Year
Sales	$	5,033,000	$	4,375,000
Cost of goods sold		3,878,600		3,442,600
Gross margin		1,154,400		932,400
Selling and administrative expenses		653,900		534,900
Net operating income		500,500		397,500
Interest expense		49,560		49,560
Net income before taxes		450,940		347,940
Income taxes (35%)		157,829		121,779
Net income		293,111		226,161
Dividends paid:
Preferred dividends		22,680		22,680
Common dividends		98,301		62,811
Total dividends paid		120,981		85,491
Net income retained		172,130		140,670
Retained earnings, beginning of year		724,170		583,500
Retained earnings, end of year	$	896,300	$	724,170

During the past year, the company has expanded the number of lines that it carries in order to stimulate sales and increase profits. It has also moved aggressively to acquire new customers. Sales terms are 2/10, n/30. All sales are on account.

Assume that the following ratios are typical of companies in the building supply industry:

Current ratio	2.5
Acid-test ratio	1.2
Average collection period	18	days
Average sale period	50	days
Debt-to-equity ratio	0.75
Times interest earned	6.0
Return on total assets	10	%
Price-earnings ratio	9

Required:

a.

Average sale period. (The inventory at the beginning of last year totaled $514,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.)

b.

c.	Present the income statement in common-size form down through net income. (Round your percentage answers to 1 decimal place i.e., 0.123 is considered as 12.3. Due to rounding, figures may not fully reconcile down a column.)

This year Last year Average sale period days days