Q 1.a) 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 Cost of Goods Sold. 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 2013 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 2.a) Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using cost of goods sold and a 365-day year, calculate Days of Sales in Inventory (using cost of goods sold). Round the answers to two decimal places Balance Sheet December 31, 2011 Cash and marketable securities $143,000 Accounts payable $278,000 Accounts receivable $354,000 Notes payable $87,000 Inventories $672,000 Accrued expenses $65,000 Prepaid expenses $12,500 Total current liabilities $430,000 Total current assets $1,181,500 Long-term debt $284,000 Gross fixed assets $1,675,000 Par value and paid-in-capital $228,000 Less: accumulated depreciation $500,000 Retained Earnings $1,414,500 Net fixed assets $1,175,000 Common Equity 1,642,500 Total assets $2,356,500 Total liabilities and owner’s equity $2,356,500 Income Statement Year of 2011 Net sales (all credit) $3,136,600.00 Less: Cost of goods sold $2,195,620.00 Selling and administrative expenses $345,000.00 Depreciation expense $146,000.00 EBIT $449,980.00 Interest expense $45,300.00 Earnings before taxes $404,680.00 Income taxes $161,872.00 Net income $242,808.00 3.a) 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 Credit Sales per Day. 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 2013 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 4. American Bacon Inc. financial statements are presented in the table below. 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, 2010 Cash and marketable securities $102,000 Accounts payable $287,000 Accounts receivable $299,000 Notes payable $61,200 Inventories $628,000 Accrued expenses $51,900 Prepaid expenses $10,300 Total current liabilities $400,100 Total current assets $1,039,300 Long-term debt $415,000 Gross fixed assets $1,502,000 Par value and paid-in-capital $376,000 Less: accumulated depreciation $312,000 Retained Earnings $1,038,200 Net fixed assets $1,190,000 Common Equity 1,414,200 Total assets $2,229,300 Total liabilities and owner’s equity $2,229,300 Income statement, Year of 2010 Net sales (all credit) $6,387,700.00 Less: Cost of goods sold $4,726,898.00 Selling and administrative expenses $345,000.00 Depreciation expense $148,000.00 EBIT $1,167,802.00 Interest expense $50,600.00 Earnings before taxes $1,117,202.00 Income taxes $446,880.80 Net income $670,321.20 4.

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