LOGIC COMPANY

Comparative Income Statement

For Years Ended December $31,2022$ and $2023$

$20232022$

Gross sales $ $21,600$ $ $16,950$

Sales returns and allowances $900100$

Net sales $ $20,700$ $ $16,850$

Cost of merchandise $($goods$)$ sold $11,3508,300$

Gross profit $ $9,350$ $ $8,550$

Operating expenses:

Depreciation $ $960$ $ $730$

Selling and administrative $4,1503,300$

Research $810630$

Miscellaneous $620430$

Total operating expenses $ $6,540$ $ $5,090$

Income before interest and taxes $ $2,810$ $ $3,460$

Interest expense $820630$

Income before taxes $ $1,990$ $ $2,830$

Provision for taxes $7961,132$

Net income $ $1,194$ $ $1,698$

LOGIC COMPANY

Comparative Balance Sheet

December $31,2022$ and $2023$

$20232022$

Assets

Current assets:

Cash $ $13,300$ $ $10,300$

Accounts receivable $17,80013,800$

Merchandise inventory $9,80015,300$

Prepaid expenses $25,30011,300$

Total current assets $ $66,200$ $ $50,700$

Plant and equipment:

Building $($net$)$ $ $15,800$ $ $12,300$

Land $14,80010,300$

Total plant and equipment $ $30,600$ $ $22,600$

Total assets $ $96,800$ $ $73,300$

Liabilities

Current liabilities:

Accounts payable $ $14,300$ $ $8,200$

Salaries payable $8,2006,300$

Total current liabilities $ $22,500$ $ $14,500$

Long$-$term liabilities:

Mortgage note payable $23,30021,800$

Total liabilities $ $45,800$ $ $36,300$

Stockholders$$ Equity

Common stock $ $22,300$ $ $22,200$

Retained earnings $28,70014,800$

Total stockholders$$ equity $ $51,000$ $ $37,000$

Total liabilities and stockholders$$ equity $ $96,800$ $ $73,300$

Calculate the average day$$s collection ratio.

Note: Use $360$ days a year. Do not round intermediate calculations. Round your answers to the nearest hundredth.

Answer rating: 100% (QA)

To calculate the average days collection ratio we proc... View the full answer