Mei-kwei International’s common stock sold for $4.30 per share at the end of this year. The company paid preferred stock dividends totalling $4,400 and a common stock dividend of $0.81 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 41,000 $ 36,200 Accounts receivable $ 74,000 $ 58,700 Inventory $ 64,900 $ 74,000 Current assets $ 179,900 $ 168,900 Total assets $ 590,000 $ 624,000 Current liabilities $ 70,500 $ 63,000 Total liabilities $ 160,000 $ 144,000 Preferred stock $ 45,000 $ 45,000 Common stock, $1 par value $ 94,000 $ 94,000 Total stockholders’ equity $ 430,000 $ 480,000 Total liabilities and stockholders’ equity $ 590,000 $ 624,000 This Year Sales (all on account) $ 865,000 Cost of goods sold $ 501,700 Gross margin $ 363,300 Net operating income $ 206,250 Interest expense $ 11,000 Net income $ 96,000 Required: What is the average collection period? (Use 365 days a year. Round your intermediate calculations and final answer to 2 decimal places.)
Mei-kwei International’s common stock sold for $4.30 per share at the end of this year. The company paid
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