TranscribedText: Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Sheridan Medical Comparative Balance Sheet As of December 31 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets 2020 2019 $391,000 $417,400 1,018,000 776,500 720,000 681,050 381,350 247,050 2,510,350 2,122,000 8,717,185 8,440,050 $11,227,535 $10,562,050 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $3,167,000 3,702,600 6,869,600 58,950 104,650 4,194,335 4,357,935 $11.227,535 $2,846,100 3,892,700 6,738,800 58,950 103,900 3,660,400 3,823,250 $10,562,050 Sheridan Medical Comparative Income Statement and Statement of Retained Earnings 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 For the Year 2020 $10,177,250 5,612,650 4,564,600 2,840,250 1,724,350 300,300 1,424,050 427,215 $996,835 2019 $9,614,000 5,298,700 4,315,300 2,634,150 1,681,150 308,650 1,372,500 411,750 $960,750 Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 29,450 433,450 462,900 233.935 3,660,400 $4,194,335 29,550 413,100 442,650 518,100 3,142,300 $3,660,400 (a-d) Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) tA a. Working capital b. Current ratio c. Acid-test ratio d. Accounts receivable turnover times e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer(e-f) Calculate the following liquidity ratios for 2020. (Round average collection period to O 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 times b. Inventory turnover eTextbook and Media Save for Later Attempts: 0 of 3 used (2) Calculate average days to sell inventory for 2020. (Round answer to O decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days eTextbook and Media Save for Later Attempts: 0 of 3 used

Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Sheridan Medical Comparative Balance Sheet As of December 31 2020 2019 Cash $391,000 $417,400 Accounts receivable, net 1,018,000 776,500 Inventory 720,000 681,050 Other current assets 381,350 247,050 Total current assets 2,510,350 2,122,000 Property, plant, & equipment, net 8,717,185 8,440,050 Total assets $11,227,535 $10,562,050