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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

  • 58.5 days

  • 33.4 days

  • 217.3 days

  • 56.2 days

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