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UMGC Canadian Bacon Inc Financial Statements Analysis
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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 Days payables outstanding (Payables conversion period).
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 |
