Sandhill Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Sandhill Medical Comparative Balance Sheet As of December 31 2016 2015 Asset Current assets $417,500 776,400 681,050 247,050 2,122,000 8,439,980 $11,263,825 $10,561,980 $376,000 1,055,000 731,000 381,400 2,543,400 8,720,425 as Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders Equity Current liabilities Long-term debt $3,203,000 3,702,700 6,905,700 58,900 104,600 4,194,625 4,358,125 $11,263,825 $2,846,100 3,892,700 6,738,800 58,900 103,800 3,660,480 3,823,180 $10,561,980 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sandhill Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid $10,177,200 $9,613,900 5,298,750 4,315,150 2,634,150 1,681,000 308,600 1,372,400 411,720 $960,680 5,612,200 4,565,000 2,840,250 1,724,750 300,400 1,424,350 427,305 $997,045 Sandhill Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid $10,177,200 $9,613,900 5,298,750 4,315,150 2,634,150 1,681,000 308,600 1,372,400 411,720 $960,680 5,612,200 4,565,000 2,840,250 1,724,750 300,400 1,424,350 427,305 $997,045 Preferred dividends Common dividends Total dividends paid 29,550 413,050 442,600 518,080 3,142,400 $4,194,625 $3,660,480 29,500 433,400 462,900 534,145 3,660,480 Net income retained Retained earnings, beginning of year Retained earnings, end of year Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover times Calculate the following liquidity ratios for 2016. (Round average collection period to 0 decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period days b. Inventory turnover times Calculate average days to sell inventory for 2016. (Round answer to 0 decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days Question Attempts: 0 of 3 used