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Q Question 5 [5 points] Use Benson Inc.'s financial statements to compute the accounts receivable collection period, and indicate whether the change from year to

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Q Question 5 [5 points] Use Benson Inc.'s financial statements to compute the accounts receivable collection period, and indicate whether the change from year to year is favourable or unfavourable. All the sales recorded in the income statement are on credit. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places. Benson Inc. Income Statement For Years Ended December 31, 2014. 2013, and 2012 2014 2013 2012 Sales $1.171,200 51,080, 100 $1.019,200 Cost of goods sold 306,600 342.700 381.300 Gross profit from sales 884.600 737.400 657.900 Operating expenses 432.500 384.200 345.200 Income from operations 432,100 353.200 312.700 Interest expense 2.750 3,150 3.050 Income before taxes 429.350 350.050 308.750 Income taxes #2.800 84.200 48.700 Net income $338,750 $285.850 $282.050 Benson Inc. Balance Sheet December 31, 2014. 2013, and 2012 Assets 2014 2013 2012 Cash $48,000 $48.600 $43,400 Short-term investments 10.000 13,000 14.000 Accounts receivable, net 23.500 25,400 25,500 Merchandise inventory 87,500 76.700 82.000 Prepaid expenses 2.200 2.500 2.800 Notes receivable. due in 2017 9.500 9.000 10.000 Plant assets, net 280.000 250,000 237.000 Total assets 5440,700 $423,200 $414.700 Liabilities and Equity Accounts payable_ $45.600 $30.300 $44.000 Salaries payable 9.900 8.300 7,300 Income taxes payable 20.000 19.750 22 200 Long-term note payable secured by mortgage on plant assets 131,000 113.000 108.000 Share capital, 200.000 shares 230.000 220,000 230,000 Retained earnings 4.200 22.850 5.200 Total liabilities and equity $440.700 $423.200 5414.700 Raso 2014 2013 Analysis Accounts receivable collection period (select one) (select one) avourable unfavourable Question 6 [5 points]

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