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Question 1(1 point)

a)Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate operating cycle.

Round the answers to two decimal places

Balance Sheet December 31, 2015

Cash and marketable securities$187,000Accounts payable$217,000Accounts receivable$498,000Notes payable$51,500Inventories$799,000Accrued expenses$58,300Prepaid expenses$19,300Total current liabilities$326,800Total current assets$1,503,300Long-term debt$215,400Gross fixed assets$1,978,000Par value and paid-in-capital$128,000Less: accumulated depreciation$478,000Retained Earnings$2,333,100Net fixed assets$1,500,000Common Equity2,461,100Total assets$3,003,300Total liabilities and owner's equity$3,003,300Income Statement, Year of 2015

Net sales (all credit)$5,386,600.00Less: Cost of goods sold$3,716,754.00Selling and administrative expenses$329,000.00Depreciation expense$138,000.00EBIT$1,202,846.00Interest expense$39,600.00Earnings before taxes$1,163,246.00Income taxes$465,298.40Net income$697,947.60Your Answer: