Dahn Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets: Cash$227,000 $150,000 Accounts receivable, net 134,000 130,000 Inventory 150,000 130,000 Prepaid expenses 83,000 80,000 Total current assets 594,000 490,000 Plant & equipment, net 769,000 840,000 Total assets$ 1,363,000 $ 1,330,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$200,000 $180,000 Accrued liabilities 63,000 70,000 Notes payable, short term 71,000 60,000 Total current liabilities 334,000 310,000 Bonds payable 290,000 290,000 Total liabilities 624,000 600,000 Stockholders'

Question

equity:        Common stock, $5 par value 400,000  400,000   Additional paid-in capital 50,000  50,000   Retained earnings 289,000  280,000 Total stockholders' equity 739,000  730,000 Total liabilities & stockholders' equity$ 1,363,000 $ 1,330,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,370,000 Cost of goods sold 850,000 Gross margin 520,000 Operating expenses 482,692 Net operating income 37,308 Interest expense 21,000 Net income before taxes 16,308 Income taxes (35%) 5,708 Net income$  10,600 Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.The company's average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

A. 1.0 days
B. 35.7 days
C. 1.1 days
D. 35.2 days

Answer 1

Answer: D