Homework: Chapter 5 Homework Score: 0 of 2 pts Problem 5-3 (similar to) Consider the financial statements for Ace Inc. E. Estimate the age of accounts receivable for each year. The age of accounts receivable for year 1 is days. (Round to one decimal place.) Year 2 Ace Inc. Income Statements (5000s) Year 1 Sales $250,880 Cost of goods sold 165,680 Gross margin 85,200 Selling & admin expenses 67,940 Depreciation 13,160 Operating income 4,100 Interest expense 860 Profit before tax 3,240 Income tax (at 35%) 1,134 Net Income $2,106 $290,080 172, 110 117,970 76,000 14,550 27,420 760 26,660 9,331 $17,329 Common dividend paid $1,120 $1,120 Ace Inc. Balance Sheets at December 31 (5000s) Year 1 Year 2 Cash $2,360 $2,929 Accounts receivable 29,160 32,890 Inventories 17,900 20,140 Total current assets 49,420 55,959 Net property & equipment 19.830 24.470 Total assets $69.250 $80,429 Notes payable: bank Accounts payable Total current liabilities Long-term debt Common equity Total liabilities and equity $19,270 14,320 33,690 21.270 14,390 $69.250 $13,210 16.790 30,000 19,830 30,599 $80,429