Analysis of Activity Measures Based on the comparative income statement and balance sheet of Cowan Kitchen Counters, Inc., that follow: 20-1 $2,163,000 Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 Net Sales (all on account) $2,584,000 Cost of goods sold 1,868,200 Gross profit $715,800 Operating expenses 315,200 Other expense (interest) 24,200 Income tax expense 176,800 Net income $199,600 1,616,800 $546,200 221,800 24,200 106,300 $193,900 Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Cash $255,400 $243,200 Government notes 250,000 797,500 Accounts receivable (net) Merchandise inventory Supplies and prepayments 250,000 903,500 983,600 143,200 108,200 330,000 17,700 $2,991,600 Land 913,600 47,500 108,200 390,600 15,000 $2,765,600 Building (net) Office equipment (net) Total assets $532,000 Current liabilities (accounts payable) Bonds payable Total liabilities $703,000 220,000 $923,000 240,000 $772,000 Common stock ($10 par, 180,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $1,800,000 268,600 $2,068,600 $1,800,000 193,600 $1,993,600 42 991 600 $2.765 600 Compute the following activity measures for 20-2 (round all calculations to two decimal places): Use 365 days when computing the accounts receivable and merchandise inventory turnover. a. Accounts receivable turnover days b. Merchandise inventory turnover days c. Asset turnover to 1 Compute the following profitability measures for 20-2 (round all calculations to two decimal places): a. Profit margin ratio b. Return on assets C. Return on common stockholders' equity d. Earnings per share of common stock