Q25

Refer to the financial statement information for Shopit Industries, Inc. Compute days' payables outstanding for Shopit for 2016 and explain in words what your answer means. 2000 sold Shopit Incorporated Financial Statement Information Balance Sheets At December 31 2016 2015 Current Assets Cash $2,125 $353 Accounts receivable 1092 1,659 Inventories 6.635 6.853 tal current assets $9,852 S8,865 Long term investments 108 Property, plant, and equipment. net 5.301 6 .011 Other long term assets 1.180 1.658 Total assets $16,427 $16,642 Income Statement Year ended December 31 Sales Cost of goods sold Selling, general, & admin. Other Interest expense Misc. gains, losses, & expenses Nar income dess) 2016 $36,154 (26,996) (7,554) (451) (446) 94 $459 Current liabilities Notes payable and debt due within one year 7 9 83 Accounts payable 1.993 2,638 Accrued payroll and other liabilities 929 1 ,158 Taxes payable income and other) 188 524 Total current liabilities $3,117 $5.303 Long term debt obligations 7,000 5,307 Shareholders' equity Common stock 2,1102 ,102 Retained earnings 4,200 3,930 Total shareholders' equity $6,310 $6,032 Selected items from the notes to consolidated financial statements Note 1: Inventories Inventories are reported using FIFO. Note 7: Property, Plant, and Equipment The components of property, plant, and equipment are as follows: December 31, 2016 Buildings........ .. ............ $ 3,482 Furniture and fixtures.. 6,570 December 31, 2015 $ 3,786 7,159 10,052 (4,751) Less-accumulated depreciation 10,945 (4,934) ------- $ 6,011 Total...... $ 5,301 Depreciation expense was $729, $680, and $677 in 2016, 2015, and 2014 respectively. The dollar amount of land owned by the Company is immaterial. There were no asset impairment charges during 2016, 2015, or 2014. Note 10: Acquisitions Shopit did not engage in any business acquisition activity during the year ended December 31, 2016. Note 11: Taxes There are no income taxes for Shopit