k. Sales Cost of goods sold MUSIC-IS-US Income Statement For the Year Ended December 31, 2021 Gross profit Bank service charges Uncollectable accounts expense Salary and wages expense Office supplies expense Insurance expense Utilities expense Depreciation expense Income before income tax Income tax expense Net Income Retained earnings $ 1,603,200 959,350 $ 643,850 $ 225 12,500 395,000 700 7,000 3,600 53.000 472.025 $ 171,825 81,000 $ 90,825 MUSIC-IS-US Statement of Retained Earnings For the Year Ending December 31, 2018 Add: Net income (From income statement) Ending Retained earnings 240,200 90,825 $ 331,025 k. (continued) MUSIC-IS-US Balance Sheet As of December 31, 2018 Current Assets Cash Marketable Securities Accounts Recievable Less: Allowance for doubtful accounts Merchandise inventory Office Supplies Prepaid insurance Total Current Assets Plant and Equipment Building and fixtures Less: Accumulated depreciation Land Total Plant and equipment Total assets $ 42,475 27,500 $ 127,500 (8.500) 119,000 248,650 900 $ 1,791,000 (805,000) $ 6,000 444,525 986,000 64,800 1,050,800 $ 1,495,325 Liabilities Current liabilities Accounts payable Unearned customer deposits Income taxes payable Total current liabilities Long term liabilities: Total liabilities Stockholders Equity Capital Stock Retained earnings (From statement of retained earnings) Unrealized holding gain on investments Total stockholders equity Total Liabilities and Stockholders equity 70,000 $ 4,800 81,000 155,800 155,800 1,000,000 $ 331,025 8,500 1,339,525 $ 1,495,325 Using the fif incial statements prepared in part k, determine approximately how many days on average an item of merchandise remains in stock before it is sold. You may assume that the company's ending merchandise inventory balance on December 31 is a close approximation of its average merchandise inventory throughout the year. balance