Exercise 12-8 Matthias Medical manufactures hospital beds and other institutional furniture. The company?s comparative balance sheet and income statement for 2012 and 2013 follow.

Matthias Medical Comparative Balance Sheet As of December 31
2013	2012
Assets
Current assets
Cash	$352,000	$417,400
Accounts receivable, net	1,000,000	776,400
Inventory	717,000	681,000
Other current assets	381,300	247,000
Total current assets	2,450,300	2,121,800
Property, plant, & equipment, net	8,766,170	8,440,100
Total assets	$11,216,470	$10,561,900
Liabilities and Stockholders? Equity
Current liabilities	$3,155,000	$2,846,000
Long-term debt	3,702,600	3,892,600
Total liabilities	6,857,600	6,738,600
Preferred stock, $5 par value	58,900	58,900
Common stock, $0.25 par value	104,600	103,800
Retained earnings	4,195,370	3,660,600
Total stockholders? equity	4,358,870	3,823,300
Total liabilities and stockholders? equity	$11,216,470	$10,561,900

Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year
2013	2012
Sales revenue (all on account)	$10,177,200	$9,613,900
Cost of goods sold	5,611,600	5,298,700
Gross profit	4,565,600	4,315,200
Operating expenses	2,840,200	2,634,100
Net operating income	1,725,400	1,681,100
Interest expense	300,300	308,600
Net income before taxes	1,425,100	1,372,500
Income taxes (30%)	427,530	411,750
Net income	$997,570	$960,750
Dividends paid
Preferred dividends	29,450	29,450
Common dividends	433,350	413,000
Total dividends paid	462,800	442,450
Net income retained	534,770	518,300
Retained earnings, beginning of year	3,660,600	3,142,300
Retained earnings, end of year	$4,195,370	$3,660,600

Calculate the following liquidity ratios for 2013.(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	$
b.	Current ratio
c.	Acid-test ratio
d.	Accounts receivable turnover		times

LINK TO TEXT

Calculate the following liquidity ratios for 2013.(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	days
b.	Inventory turnover	times

LINK TO TEXT

Calculate average days to sell inventory for 2013.(Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.)

Average days to sell inventory

days

Exercise 12-8 Matthias Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2012 and 2013 follow. Matthias Medical Comparative Balance Sheet As of December 31 2013 2012 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets $352,000 1,000,000 717,000 381,300 $417,400 776,400 681,000 247,000 2,450,300 8,766,170 2,121,800 8,440,100 $11,216,470 $10,561,900 $3,155,000 3,702,600 $2,846,000 3,892,600 6,857,600 6,738,600 58,900 104,600 4,195,370 58,900 103,800 3,660,600 4,358,870 3,823,300 $11,216,470 $10,561,900 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2013 Sales revenue (all on account) Cost of goods sold 2012 $10,177,200 5,611,600 $9,613,900 5,298,700 Gross profit Operating expenses 4,565,600 2,840,200 4,315,200 2,634,100 Net operating income Interest expense 1,725,400 300,300 1,681,100 308,600 Net income before taxes Income taxes (30%) 1,425,100 427,530 1,372,500 411,750 $997,570 $960,750 Preferred dividends Common dividends 29,450 433,350 29,450 413,000 Total dividends paid 462,800 442,450 534,770 3,660,600 518,300 3,142,300 $4,195,370 $3,660,600 Net income Dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year Calculate the following liquidity ratios for 2013. (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 b. Current ratio c. Acid-test ratio d. Accounts receivable turnover times LINK TO TEXT Calculate the following liquidity ratios for 2013. (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 days b. Inventory turnover times LINK TO TEXT Calculate average days to sell inventory for 2013. (Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days