Reference no: EM132525064

Canadian Bacon Inc. financial statements are presented in the table below.

Question 1: Based on the information in the table, and using a 365-day year, calculate the average collection period (also called Days of Sales in Receivables or Number of Days of Credit). Round the answers to two decimal places

Balance Sheet December 31, 2015

Cash and marketable securities $187,000

Accounts payable $217,000

Accounts receivable $498,000

Notes payable $51,500

Inventories $799,000

Accrued expenses $58,300

Prepaid expenses $19,300

Total current liabilities $326,800

Total current assets $1,503,300

Long-term debt $215,400

Gross fixed assets $1,978,000

Par value and paid-in-capital $128,000

Less: accumulated depreciation $478,000

Retained Earnings $2,333,100

Net fixed assets $1,500,000

Common Equity 2,461,100

Total assets $3,003,300

Total liabilities and owner's equity $3,003,300

Income Statement, Year of 2015

Net sales (all credit) $5,386,600.00

Less: Cost of goods sold $3,716,754.00

Selling and administrative expenses $329,000.00

Depreciation expense $138,000.00

EBIT $1,202,846.00

Interest expense $39,600.00

Earnings before taxes $1,163,246.00

Income taxes $465,298.40

Net income $697,947.60