Biology Forums - Study Force

Freiman Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$ 160	$ 120
Accounts receivable, net	220	240
Inventory	120	130
Prepaid expenses	40	40
Total current assets	540	530
Plant and equipment, net	700	700
Total assets	$ 1,240	$ 1,230
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 130	$ 150
Accrued liabilities	90	90
Notes payable, short term	60	70
Total current liabilities	280	310
Bonds payable	280	290
Total liabilities	560	600
Stockholders' equity:
Common stock, $2 par value	100	100
Additional paid-in capital	200	200
Retained earnings	380	330
Total stockholders' equity	680	630
Total liabilities & stockholders' equity	$ 1,240	$ 1,230

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,310
Cost of goods sold	780
Gross margin	530
Selling and administrative expenses	359
Net operating income	171
Interest expense	35
Net income before taxes	136
Income taxes (30%)	41
Net income	$ 95

The average sale period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ 58.5 days

▸ 33.4 days

▸ 217.3 days

▸ 56.2 days

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