Hedrick Company
Comparative Balance Sheet
	This Year		Last Year
Assets
Current assets:
Cash	$	317,000	$	415,000
Marketable securities		0		102,000
Accounts receivable, net		897,000		598,000
Inventory		1,340,000		780,000
Prepaid expenses		78,000		67,000
Total current assets		2,632,000		1,962,000
Plant and equipment, net		3,336,800		3,164,700
Total assets	$	5,968,800	$	5,126,700
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	1,350,000	$	880,000
Bonds payable, 10%		1,270,000		1,190,000
Total liabilities		2,620,000		2,070,000
Stockholders' equity:
Preferred stock, 8%, $30 par value		600,000		600,000
Common stock, $40 par value		2,000,000		2,000,000
Retained earnings		748,800		456,700
Total stockholders' equity		3,348,800		3,056,700
Total liabilities and stockholders' equity	$	5,968,800	$	5,126,700

Hedrick Company
Comparative Income Statement and Reconciliation
	This Year		Last Year
Sales (all on account)	$	5,390,000	$	4,160,000
Cost of goods sold		4,190,000		3,260,000
Gross margin		1,200,000		900,000
Selling and administrative expenses		510,000		520,000
Net operating income		690,000		380,000
Interest expense		127,000		119,000
Net income before taxes		563,000		261,000
Income taxes (30%)		168,900		78,300
Net income		394,100		182,700
Dividends paid:
Preferred stock		48,000		48,000
Common stock		54,000		27,000
Total dividends paid		102,000		75,000
Net income retained		292,100		107,700
Retained earnings, beginning of year		456,700		349,000
Retained earnings, end of year	$	748,800	$	456,700

e.	The average sale period. (The inventory at the beginning of last year totaled $540,000.) (Use 365 days in a year.Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)

	This year	Last year
Average sale period	days	days