December 31, 20x1

Sales (all credit) $200,000

Cost of goods sold 140,000

Gross profit on sales 60,000

Operating expenses 56,000

Operating income 4,000

Interest expense 1,000

Earnings before tax 3,000

Income tax 1,050

Net income available to common stockholders $1,950

ABC, Inc. Balance Sheet (in thousands)

December 31, 20x1

Assets

Cash $2,000

Accounts receivable 17,800

Inventories 8,700

Total current assets 28,500

Gross fixed assets 70,000

Accumulated depreciation 26,500

Net fixed assets 43,500

Total assets $72,000

Liabilities and Equity

Accounts payable $18,000

Accruals 13,350

Total current liabilities 31,350

Long-term debt 8,250

Total liabilities 39,600

Common stock (par value and paid in capital) 2,000

Retained earnings 30,400

Total stockholders' equity 32,400

Total liabilities and equity $72,000

A) In 20x1, ABC's average collection period is:

A) 30 days

B) 32.5 days.

C) 25 days.

D) 35 days.

B) In 20x1, ABC's inventory turnover is:

A) 23.9.

B) 20.3.

C) 15.5.

D) 16.1.

C) In 20x1, ABC's fixed asset turnover is:

A) 2.78.

B) 5.0.

C) 4.6.

D) 4.8.