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 Accounts receivable, net Inventory Other current assets $417,500 776,450 681,100 247,050 2,122,100 8,439,880 $11,257,550 $10,561,980 $390,000 1,038,000 746,000 381,350 2,555,350 8,702,200 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,196,000 3,702,700 6,898,700 58,900 104,700 4,195,250 4,358,850 $11,257,550 $2,846,100 3,892,600 6,738,700 58,950 103,800 3,660,530 3,823,280 $10,561,980 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid $10,177,200$9,613,950 5,298,700 4,315,250 2,634,200 1,681,050 308,650 1,372,400 411,720 $960,680 5,611,600 4,565,600 2,840,200 1,725,400 300,300 1,425,100 427,530 $997,570 29,550 413,000 442,550 518,130 3,142,400 $4,195,250 $3,660,530 Preferred dividends Common dividends Total dividends paid 29,450 433,400 462,850 534,720 3,660,530 Net income retained Retained earnings, beginning of year Retained earnings, end of year Your answer is partially correct. Try again. Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000). Round all answers except working capital to2 decimal places, e.g. 2.55.) a. Working capital 640650 Your answer is partially correct. Try again. Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a. Working capital 640650 b. Current ratio 799 c. Acid-test ratio 0.57 d. Accounts receivable turnover 11.22 times Your answer is correct Calculate the following liquidity ratios for 2016. (Round average collection period to 0 decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period b. Inventory turnover 2. 53) days times Your answer is correct Calculate average days to sell inventory for 2016. (Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory 46.438 days Question Attempts: 2 of 3 used
