Mixon Company's year-end balance sheets show the following:2006 20052004

Cash $ 30,800 $ 35,625 $ 36,800

Accounts receivable, net . 88,500 62,500 49,200

Merchandise inventory . . . . . . . . . . . . . . . 111,500 82,500 53,000

Prepaid expenses . . . . . . . . . . . . . . . . . . . 9,700 9,375 4,000

Plant assets, net . . . . . . . . . . . . . . . . . . . 277,500 255,000 229,500 Total assets . . . . . . . . . . . . . . . . . . . . . . . $518,000 $445,000 $372,500 Accounts payable . . . . . . . . . . . . . . . . . . . $128,900 $ 75,250 $ 49,250 Long-term notes payable secured by mortgages on plant assets . . . . . . . 97,500 102,500 82,500 Common stock, $10 par value . . . . . . . . . 162,500 162,500 162,500 Retained earnings . . . . . . . . . . . . . . . . . . 129,100 104,750 78,250 Total liabilities and equity . . . . . . . . . . . . $518,000 $445,000 $372,500 Required: Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results. HARBISON CORPORATION Comparative Income Statement For Years Ended December 31, 2006 and 2005 2006

Mixon Company. The company's income statements for the years ended December 31, 2006 and 2005 show the following: 2006 2005 Sales . . . . . . . . . . . . . . . . . . . . . . $672,500 $530,000 Cost of goods sold . . . . . . . . . . . . $410,225 $344,500 Other operating expenses . . . . . . 208,550 133,980 Interest expense . . . . . . . . . . . . . 11,100 12,300 Income taxes . . . . . . . . . . . . . . . . 8,525 7,845 Total costs and expenses . . . . . . . . . . . . . . . . . . . (638,400) (498,625) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,100 $ 31,375 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $ 2.10 $ 1.93 Required: For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (b) accounts receivable turnover, (c) inventory turnover, and (d ) days' sales in inventory. Comment on the changes in the ratios from 2005 to 2006.