Questions 4 (6 points) Given the following Balance Sheets and the Income Statement for Leo Construction, find out: (a) The Average Age of Accounts Receivable (b) The Average Age of Accounts Payable 12/31/2020 144,254 330,138 15,234 0 0 0 4,825 7,225 501.676 net Leo Construction Balance Sheet For Quarters Ending 3/28/2020, 6/30/2020, 9/30/2020, and 12/31/2020 Current assets 3/28/2020 6/30/2020 9/30/2020 Cash and cash equivalents 200,492 19,462 16,543 Account receivables 428,219 401,256 375.984 Costs & recog'd carnings in 32,586 27,463 20.227 excess of billings Inventories 0 Notes receivable 12,548 8,794 7,632 Prepaid expenses 5,621 6,121 5,012 Other current assets 11,254 8,992 9,112 Total current assets 690,720 472.088 434,510 Noncurrent assets Property, plant, and equipment 379,287 379.287 345,248 Less accumulated depreciation (56,128) (112,256) (147,623) Property, plant, and equipment, 323,159 267,031 197,625 Other noncurrent assets 178,544 173,226 172,110 Total noncurrent assets 501.703 440.257 369.735 Total assets 1.192,423 912,345 804.245 Current liabilities: Notes payable and notes of credit 15,514 34,516 40.228 Accounts payable 348,004 310,756 294.557 Accrued expenses 29,733 30,771 27,884 Billings in excess of costs & 5,218 recog'd carnings 6,782 9,938 Other current liabilities 25,438 27,893 32,198 Total current liabilities 423.907 410,718 404,805 Long-term liabilities 153.215 128.110 109,287 Total liabilities 577,122 538,828 514,092 Net Worth: Common stock 10,000 10,000 10,000 Retained earnings 605,301 363,517 280.153 Total net worth 615,301 373,517 290,153 Total liabilities and net worth 1.192,423 912,345 804,245 345,248 (182.990) 162.258 171,256 333,514 835.190 45.250 246,839 27,914 11,562 35,648 367.213 99,073 466,286 10,000 358,904 368,904 835,190 Leo Construction Income Statement For Year Ending December 31, 2020 Operation revenue 3,698,945 Direct cost Materials (712,564) Labor (896,514) Subcontract (1,452,352) Equipment (119,575) Other (5,452) Total direct cost (3,188,457) Gross profit 512,488 Overhead (422,562) Net income from operations 89,926 Other income 21,521 Net income before taxes 111,447 Income tax 33,434 Net income 78,013