QUESTION 19 OZY Dec 31, Income Statements 2009 2010 Net Sales $2,600,000 $3,000,000 Cost of Goods Sold 1,560,000 1,720,000 Gross Profit 1,040,000 1,280,000 260,000 320,000 Marketing Exp. 300,000 300,000 General & Admin Exp 80,000 110,000 Depreciation 400,000 550,000 Earnings before Interest and Taxes Interest 90,000 100,000 310,000 440,000 Earnings before Taxes 124,000 Income Taxes 176,000 264,000 Net Income 186,000 Balance Sheet Dec 31 Hand Side of HS 2009 2010 Caush $100,000 $100,000 Accounts Receivable 300,000 740,000 Inventory 900,000 1,000,000 Total Current Assets Net Fixed Assets 700,000 760,000 Accumulated Depreciation Net Fixed Assets Total Assets 2,000,000 2,600,000 Right Hand Side of BS Accounts payable 360,000 500,000 Bank Debt 180,000 180,000 Total Current Liabilities Long Term Debt 800,000 1,100,000 500,000 Common Stock and Paid-in Cap. 500,000 Retained Earnings 160,000 320,000 Total Debt and Equity 2,000,000 2,600,000 Right Hand Side of HS Accounts payable 360,000 500,000 Bank Debt 180,000 180,000 Total Current Liabilities Long Term Debt 800,000 1,100,000 500,000 Common Stock and Paid-in Cap. 500,000 Retained Earnings 160,000 Total Debt and Equity 2,000,000 320,000 2,600,000 For 2010, the length of sales to-cash conversion cycle for QZY is: A. 95.15days 8.301.72 days C. 50.48 days D. 227.52 days E. None of the above PUESTION 29