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Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year
Freiman Corporation's most recent balance sheet and income statement appear below:
Balance Sheet | |||||||||||
December 31, Year 2 and Year 1 | |||||||||||
(in thousands of dollars) | |||||||||||
Year 2 | Year 1 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash | $ | 160 | $ | 120 | |||||||
Accounts receivable, net | 220 | 240 | |||||||||
Inventory | 120 | 130 | |||||||||
Prepaid expenses | 40 | 40 | |||||||||
Total current assets | 540 | 530 | |||||||||
Plant and equipment, net | 700 | 700 | |||||||||
Total assets | $ | 1,240 | $ | 1,230 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 130 | $ | 150 | |||||||
Accrued liabilities | 90 | 90 | |||||||||
Notes payable, short term | 60 | 70 | |||||||||
Total current liabilities | 280 | 310 | |||||||||
Bonds payable | 280 | 290 | |||||||||
Total liabilities | 560 | 600 | |||||||||
Stockholders' equity: | |||||||||||
Common stock, $2 par value | 100 | 100 | |||||||||
Additional paid-in capital | 200 | 200 | |||||||||
Retained earnings | 380 | 330 | |||||||||
Total stockholders' equity | 680 | 630 | |||||||||
Total liabilities & stockholders' equity | $ | 1,240 | $ | 1,230 | |||||||
Income Statement | |||||||||||
For the Year Ended December 31, Year 2 | |||||||||||
(in thousands of dollars) | |||||||||||
Sales (all on account) | $ | 1,310 | |||||||||
Cost of goods sold | 780 | ||||||||||
Gross margin | 530 | ||||||||||
Selling and administrative expenses | 359 | ||||||||||
Net operating income | 171 | ||||||||||
Interest expense | 35 | ||||||||||
Net income before taxes | 136 | ||||||||||
Income taxes (30%) | 41 | ||||||||||
Net income | $ | 95 | |||||||||
The inventory turnover for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-10-04
Multiple Choice
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58.5 days
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33.4 days
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217.3 days
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56.2 days
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