Exercise 12-8 (unit 60

Matthias Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2012 and 2013 follow.

A - 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.)

B - 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.)

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

Matthias Medical Comparative Balance Sheet As of December 31 2013 2012 Assets Current assets Cash $380,000 $417,500 Accounts receivable, net 776,500 1,035,000 681,050 Inventory 726,000 Other current assets 381,400 247,000 2,522,400 2,122,050 Total current assets Property, plant, & equipment, net 8,738,625 8,439,845 $11,261,025 $10,561,895 Total assets Liabilities and Stockholders' Equity Current liabilities $3,201,000 $2,846,100 Long-term debt 3,702,650 3,892,600 Total liabilities 6,738,700 6,903,650 58,900 Preferred stock, $5 par value 58,900 103,900 Common stock, $0.25 par value 104,700 Retained earnings 4,193,775 3,660,395 Total stockholders' equity 4,357,375 3,823,195 Total liabilities and stockholders' equity $11,261,025 $10,561,895