What was the firm's average collection period for 2018 ?

a. 36.5 days

c. 35.6 days

b. 37.4 days

d. 18.3 days

Sales revenues for 2018 were \(\$ 800,000\), gross profit was \(\$ 320,000\), and net income was \(\$ 36,000\). The income tax rate was 40 percent. One year ago, accounts receivable (net) were \(\$ 76,000\), inventory was \(\$ 110,000\), total assets were \(\$ 460,000\), and stockholders' equity was \(\$ 260,000\). The bonds payable were outstanding all year and the 2018 interest expense was \(\$ 12,000\).

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Cash..... Accounts receivable (net). Inventory....... Plant and equipment (net) Total assets HYDRO COMPANY Balance Sheet December 31, 2018 $ 40,000 Current liabilities... $ 80,000 80,000 10% bonds payable 120,000 130,000 Common stock.... 200,000 ... 250,000 Retained earnings 100,000 $500,000 Total liabilities and stockholders' equity $500,000