Reference no: EM132781683
Question - Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate Average Day's Purchases. Round the answers to two decimal places
Balance Sheet December 31, 2013
Cash and marketable securities - $112,000
Accounts payable - $211,000
Accounts receivable - $325,000
Notes payable - $51,500
Inventories - $426,000
Accrued expenses - $50,100
Prepaid expenses - $10,700
Total current liabilities - $312,600
Total current assets - $873,700
Long-term debt - $225,000
Gross fixed assets - $1,514,000
Par value and paid-in-capital - $117,000
Less: accumulated depreciation - $315,000
Retained Earnings - $1,418,100
Net fixed assets - $1,199,000
Common Equity - 1,535,100
Total assets - $2,072,700
Total liabilities and owner's equity - $2,072,700
Income Statement, Year of 2015
Net sales (all credit) - $3,256,600.00
Less: Cost of goods sold - $2,572,714.00
Selling and administrative expenses - $323,000.00
Depreciation expense - $115,000.00
EBIT - $245,886.00
Interest expense - $29,600.00
Earnings before taxes - $216,286.00
Income taxes - $86,514.40
Net income - $129,771.60