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Analysis of Activity Measures

Based on the comparative income statement and balance sheet of Cowan Kitchen Counters, Inc., that follow:

Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1
	20-2		20-1
Net Sales (all on account)		$2,568,100		$2,164,900
Cost of goods sold		1,855,800		1,610,400
Gross profit		$712,300		$ 554,500
Operating expenses		310,300		211,700
Other expense (interest)		24,200		24,200
Income tax expense		178,500		104,200
Net income		$199,300		$214,400

Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Cash		$261,100		$242,700
Government notes		248,500		248,500
Accounts receivable (net)		901,100		797,100
Merchandise inventory		989,100		914,600
Supplies and prepayments		147,000		48,300
Land		106,500		106,500
Building (net)		331,000		388,000
Office equipment (net)		17,700		15,000
Total assets		$3,002,000		$2,760,700
Current liabilities (accounts payable)		$703,400		$530,200
Bonds payable		220,000		240,000
Total liabilities		$923,400		$770,200
Common stock (10 par, 180,000 shares)		$1,800,000		$1,800,000
Retained earnings		278,600		190,500
Total stockholders' equity		$2,078,600		$1,990,500
Total liabilities and stockholders' equity		$3,002,000		$2,760,700

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.

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