EXERCISE 1-5 Evaluating Risk and Capital Structure Page 50 Refer to the information in Exercise 1-3 aboutMixorn Company. The company's income statements for the years ended December 31, 2006 and 2005 show the following 2006 2005 $672,500 $530,000 . . . $410,225 ..208,550 $344,500 133,980 12,300 7,845 Cost of goods sold Other operating expenses Income taxes Total costs and expenses ....8,525 (498,625) 31,375 (638,40) .. . . . . . . . .. Required For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (b) accounts receivable turnover, (c) inventory turnover, and (d) days' sales in inventory Comment on the changes in the ratios from 2005 to 2006