Reference no: EM132513565

American Bacon Inc. financial statements are presented in the table below.

Question 1: 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, 2010

Cash and marketable securities $102,000                           Accounts payable $287,000

Accounts receivable $299,000                                            Notes payable $61,200

Inventories $628,000                                                          Accrued expenses $51,900

Prepaid expenses $10,300                                                   Total current liabilities $400,100

Total current assets $1,039,300                                                Long-term debt $415,000

Gross fixed assets $1,502,000                                                       Par value and paid-in-capital $376,000

Less: accumulated depreciation $312,000                                           Retained Earnings $1,038,200

Net fixed assets $1,190,000                                                               Common Equity 1,414,200

Total assets $2,229,300                                                           Total liabilities and owner's equity $2,229,300

Income statement, Year of 2010

Net sales (all credit) $6,387,700.00

Less: Cost of goods sold $4,726,898.00

Selling and administrative expenses $345,000.00

Depreciation expense $148,000.00

EBIT $1,167,802.00

Interest expense $50,600.00

Earnings before taxes $1,117,202.00

Income taxes $446,880.80

Net income $670,321.20