Question 6 (6 points)

Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):

Alpha Company
December 31
Accounts	2016	2015
Accounts Receivable	$50,500	$40,500
Allowance for Doubtful Accounts	2,500	1,500
Merchandise Inventory	57,000	50,000
Office Supplies	25,000	20,000
Credit Sales	985,000	740,000
Sales Discounts	10,000	9,000
Interest Income	25,000	20,000
Cost of Goods Sold	460,000	385,000

1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)

2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days. (Example 1.123 would be entered 1.1 days)

Question 7 (6 points)

February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2016. Costs incurred during this period were:

Item	Amount
Demolition dilapidated building	$4,500
Architect Fees	$9,750
Legal Fees - for title search	$2,500
Interest During Active Construction Period	$17,500
Construction Costs	$510,000

Using this information, how much should be recorded as the cost of: (Enter only whole dollar values.)

1. Land

2. New Building