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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)		$2,590,300		$2,160,400
Cost of goods sold		1,855,900		1,625,500
Gross profit		$734,400		$ 534,900
Operating expenses		319,700		220,100
Other expense (interest)		24,200		24,200
Income tax expense		178,600		105,900
Net income		$211,900		$184,700

Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Cash		$261,600		$244,300
Government notes		247,200		247,200
Accounts receivable (net)		903,900		797,300
Merchandise inventory		990,800		906,700
Supplies and prepayments		146,800		46,900
Land		106,800		106,800
Building (net)		330,300		390,000
Office equipment (net)		17,600		15,800
Total assets		$3,005,000		$2,755,000
Current liabilities (accounts payable)		$697,700		$530,600
Bonds payable		220,000		240,000
Total liabilities		$917,700		$770,600
Common stock (10 par, 180,000 shares)		$1,800,000		$1,800,000
Retained earnings		287,300		184,400
Total stockholders' equity		$2,087,300		$1,984,400
Total liabilities and stockholders' equity		$3,005,000		$2,755,000

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

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