Please clearly explain all steps and show all calculations. Thank you.

EXERCISE 15 Evaluating Short-Term Liquidity Refer to the information in Exercise 1-3 about Mixon Company. The company's income statements for the years ended December 31, 2006 and 2005 show the following: 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. Mixon Company's year-end balance sheets show the following