The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 260,000 Merchandise inventory 370,000 Prepaid expenses 9,000 Total current assets 662,000 Property and equipment, net 860,000 Total assets $1,522,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 280,000 Bonds payable, 12% 350,000 Total liabilities 630,000 Stockholders' equity: Common stock, $10 per value $ 190,0 Retained earnings 702,000 Total stockholders' equity 892,000 Total liabilities and stockholders' equity $1,522,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 4,410,000 Cost of goods sold 1,235,000 Gross margin 3,175,000 Selling and administrative expenses 560,000 Net operating income 2,615,000 Interest expense 42,000 Net income before taxes 2,573,000 Income taxes (30%) 771,900 Net income $1,801,100 Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $280,000. All sales were on account. 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.)