Use the following selected financial information for Wilcox Corporation to answer questions 11-20.

Wilcox Corporation

Income Statement

For the Year Ended December 31, 20XX

Net sales $2,870

Cost of goods sold 1,985

Gross profit $ 885

Operating expenses 620

Operating profit $ 265

Interest expense 40

Earnings before taxes $ 225

Income tax expense 80

Net profit $ 145

Wilcox Corporation

Balance Sheet

December 31, 20XX

Assets Liabilities and stockholders' equity

Current assets Current liabilities

Cash $ 25 Accounts payable $ 85

Short-term investments 15 Accrued liabilities 45

Accounts receivable 70 Total current liabilities 130

Inventory 150 Long-term debt 240

Total current assets 260 Total liabilities 370

Long-term assets Stockholders' equity

Net PPE 390 Common stock and PIC 80

Goodwill 210 Retained earnings 410

Total stockholders' equity 490

Total assets $860 Total liabilities and equity $860

WilcoxCorporation

Statement of Cash Flow Information

For the Year Ended December 31, 20XX

Cash from operating activities $150

Investing activities:

Capital expenditures $ 60

Acquisitions $ 10

Financing activities:

Proceeds from long-term borrowing $ 50

Payments on long-term borrowing $ 25

Payments of cash dividends $ 20

Cash paid for interest $ 10

Cash paid for income taxes $ 75

Wilcoxs average collection period is:

	a.	5 days
	b.	9 days
	c.	13 days
	d.	15 days