Beer and Donuts Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position

December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Assets
Current assets:
Cash ................................................................... $ 520 $ 440
Accounts receivable .......................................... 410 380
Inventory ........................................................... 290 280
Prepaid expenses ............................................... 20 20
Total current assets ............................................... 1,240 1,120
Plant and equipment, net ...................................... 860 920
Total assets ........................................................... $2,100 $2,040

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable .............................................. $ 290 $ 280
Accrued liabilities ............................................. 180 180
Notes payable, short term .................................. 100 100
Total current liabilities ......................................... 570 560
Bonds payable ...................................................... 360 350
Total liabilities ...................................................... 930 910
Stockholders’ equity:
Preferred stock, $100 par value, 5% ................. 250 250
Common stock, $1 par value ............................. 150 150
Additional paid-in capital–common stock ........ 200 200
Retained earnings .............................................. 570 530
Total stockholders’ equity .................................... 1,170 1,130
Total liabilities & stockholders’ equity ................ $2,100 $2,040
 Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) ........................................... $1,540
Cost of goods sold ................................................ 1,250
Gross margin ........................................................ 290
Selling and administrative expense ...................... 80
Net operating income ........................................... 210
Interest expense .................................................... 35
Net income before taxes ....................................... 175
Income taxes (30%) .............................................. 53
Net income ........................................................... $ 122

Dividends on common stock during Year 2 totaled $50 thousand. Dividends on preferred
stock totaled $8 thousand. The market price of common stock at the end of Year 2 was
$17 per share.

Accounts receivable turnover = Sales on account ÷ Average accounts receivable* =

*Average accounts receivable =

Average collection period = 365 days ÷ Accounts receivable turnover (see above) =

Inventory turnover = Cost of goods sold ÷ Average inventory* =

*Average inventory =

Average sale period = 365 days ÷ Inventory turnover (see above) =