OGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020   2020 2019 Gross sales $ 19,000 $ 15,000 Sales returns and allowances   1,000   100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold   12,000   9,000 Gross profit $ 6,000 $ 5,900 Operating expenses:         Depreciation $ 700 $ 600 Selling and administrative   2,200   2,000 Research   550   500 Miscellaneous   360   300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense   560   500 Income before taxes $ 1,630 $ 2,000 Provision for taxes   640   800 Net income $ 990 $ 1,200     LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020   2020 2019 Assets         Current assets:         Cash $ 12,000 $ 9,000 Accounts receivable   16,500   12,500 Merchandise inventory   8,500   14,000 Prepaid expenses   24,000   10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment:         Building (net) $ 14,500 $ 11,000 Land   13,500   9,000 Total plant and equipment $ 28,000 $ 20,000 Total assets $ 89,000 $ 65,500 Liabilities         Current liabilities:         Accounts payable $ 13,000 $ 7,000 Salaries payable   7,000   5,000 Total current liabilities $ 20,000 $ 12,000 Long-term liabilities:         Mortgage note payable   22,000   20,500 Total liabilities $ 42,000 $ 32,500 Stockholders’ Equity         Common stock $ 21,000 $ 21,000 Retained earnings   26,000   12,000 Total stockholders’ equity $ 47,000 $ 33,000 Total liabilities and stockholders’ equity $ 89,000 $ 65,500     Calculate the Average day’s collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)         2020 2019   Average day’s collection ratio     Days

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2019 and 2020
  2020 2019
Gross sales $ 19,000 $ 15,000
Sales returns and allowances   1,000   100
Net sales $ 18,000 $ 14,900
Cost of merchandise (goods) sold   12,000   9,000
Gross profit $ 6,000 $ 5,900
Operating expenses:        
Depreciation $ 700 $ 600
Selling and administrative   2,200   2,000
Research   550   500
Miscellaneous   360   300
Total operating expenses $ 3,810 $ 3,400
Income before interest and taxes $ 2,190 $ 2,500
Interest expense   560   500
Income before taxes $ 1,630 $ 2,000
Provision for taxes   640   800
Net income $ 990 $ 1,200
 

 

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2019 and 2020
  2020 2019
Assets        
Current assets:        
Cash $ 12,000 $ 9,000
Accounts receivable   16,500   12,500
Merchandise inventory   8,500   14,000
Prepaid expenses   24,000   10,000
Total current assets $ 61,000 $ 45,500
Plant and equipment:        
Building (net) $ 14,500 $ 11,000
Land   13,500   9,000
Total plant and equipment $ 28,000 $ 20,000
Total assets $ 89,000 $ 65,500
Liabilities        
Current liabilities:        
Accounts payable $ 13,000 $ 7,000
Salaries payable   7,000   5,000
Total current liabilities $ 20,000 $ 12,000
Long-term liabilities:        
Mortgage note payable   22,000   20,500
Total liabilities $ 42,000 $ 32,500
Stockholders’ Equity        
Common stock $ 21,000 $ 21,000
Retained earnings   26,000   12,000
Total stockholders’ equity $ 47,000 $ 33,000
Total liabilities and stockholders’ equity $ 89,000 $ 65,500
 

 

Calculate the Average day’s collection ratio. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.)

 

 
 
  2020 2019  
Average day’s collection ratio     Days
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