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BALANCE SHEET 12/31/2018 12/31/2017 Assets $95,000 Cash $103,000 $536,000 Accts Receivable $346,000 $159,000 Inventory $63,000 $12,000 Prepaids $12,000 $802,000 Total Current $524,000 $651,000 Bldgs and Equip $651,000 $(200,000) Less Depreciation $(150,000) $451,000 Net Fixed Assets $501,000 $1,253,000 Total Assets $1,025,000 Liab and Equity $276,000 Accts Payable $193,000 $43,000 Accrued Expense $26,000 $100,000 Bank Credit Line $50,000 $15,000 Mortgage Current $14,000 $434,000 Total Current $283,000 $439,000 L/T Mortgage $460,000 $300,000 Common Stock $300,000 $80,000 Retained Earnings $(18,000) $380,000 Total Equity $282,000

INCOME STATEMENT YE 2018 YE 2017 $1,900,000 Net Sales $1,400,000 $1,273,000 Cost of Sales $980,000 $627,000 Gross profit $420,000 Operating Expense $275,000 Salaries $214,000 $42,000 Benefits $31,000 $12,000 Rent $8,000 $50,000 Depreciation $50,000 $50,000 Marketing $45,000 $70,000 Other $48,000 $499,000 Total Op Exp $396,000 $30,000 Interest Expense $45,000 $98,000 Net Income/(Loss) $(21,000) It looks like the company is now profitable after a typically rocky start. You're concerned that profits could drop again if some of the accounts receivable can't be collected. Neither owner is concerned because they claim to know their customers well. You recognize, however, that this locks up your working capital and decide to calculate the days sales outstanding as of 12/31/18. How many days of AR are outstanding?

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