Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Cullumber Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash $390,000 $417,500 Accounts receivable, net 1,038,000 776,450 Inventory 746,000 681,100 Other current assets 381,350 247,050 Total current assets 2,555,350 2,122,100 Property, plant, & equipment, net 8,702,200 8,439,880 $11,257,550 $10,561,980 Total assets Liabilities and Stockholders' Equity Current liabilities $2,846,100 $3,196,000 3,702,700 Long-term debt 3,892,600 Liabilities and Stockholders' Equity Current liabilities $3,196,000 3,702,700 6,898,700 $2,846,100 3,892,600 Long-term debt Total liabilities 6,738,700 Preferred stock, $5 par value 58,900 58,950 Common stock, $0.25 par value 104,700 103,800 Retained earnings 4,195,250 3,660,530 Total stockholders' equity 4,358,850 3,823,280 Total liabilities and stockholders' equity $11,257,550 $10,561,980 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) 2016 $10,177,200 5,611,600 2015 $9,613,950 5,298,700 Cost of goods sold Gross profit 4,565,600 4,315,250 Operating expenses 2,840,200 1.725,400 2,634,200 1,681,050 Net operating income Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) 2016 $10,177,200 5,611,600 4,565,600 2015 $9,613,950 5,298,700 4,315,250 Cost of goods sold Gross profit Operating expenses 2,840,200 2,634,200 Net operating income 1,725,400 1,681,050 Interest expense 300,300 Net income before taxes 1,425,100 308,650 1,372,400 411,720 Income taxes (30%) 427,530 Net income $997,570 $960,680 Dividends paid Preferred dividends 29,450 29,550 Common dividends 433,400 413,000 Total dividends paid 462,850 442,550 Net income retained 534,720 518,130 Retained earnings, beginning of year 3,660,530 3,142,400 Retained earnings, end of year $4,195,250 $3,660,530 Ny LU stal X 3-Day General Admission x + com/courses/36019/assignments/3780450 (e-f) @ B Pal Your answer is correct. Calculate the following liquidity ratios for 2016. (Round average collection period to 0 decimal place, eg. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period 32.54 days b. Inventory turnover 7.86 times eTextbook and Media Attempts: 3 of 12 used Calculate average days to sell inventory for 2016. (Round answer to decimal places, e.g. 25. Use 365 days for calculation.) days Average days to sell inventory e Teythonk and Media Your answer is correct. Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parentheses, es -15,000 or (15,000). Round all answers except working capital to 2 decimal places, eg. 2.55.) a Working capital (640650) b. Current ratio 0.799 c Acid-test ratio 0.447 d. Accounts receivable turnover 1122 times e Textbook and Media