Blossom Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Blossom Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts recelvable, net Inventory Other current assets $417,400 776,400 681,000 247,000 2,121,800 8,440,100 $11,216,470 $10,561,900 $352,000 1,000,000 717,000 381,300 2,450,300 8,766,170 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings $3,155,000 $2,846,000 3,892,600 6,738,600 58,900 103,800 3,660,600 3,823,300 3,702,600 6,857,600 58,900 104,600 4,195,370 4,358,870 Total stockholders' equity Total liabilities and stockholders' equity $11,216,470$10,561,900 Blossom Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid $10,177,200 $9,613,900 5,298,700 4,315,200 2,634,100 1,681,100 308,600 1,372,500 411,750 $960,750 5,611,600 4,565,600 2,840,200 1,725,400 300,300 1,425,100 427,530 $997,570 Preferred dividends Common divldends Total dividends pald Net income retained 29,450 413,000 442,450 518,300 3,142,300 $4,195,370 $3,660,600 29,450 433,350 462,800 534,770 3,660,600 Retained earnings, beginning of year Retained earnings, end of year -704700 a. Working capital 0.78 b. Current ratio 0.56 c. Acid-test ratio 6.32 d. Accounts recelvable turnover times Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEX LINK TO VIDEO Attempts: 3 of 3 used (e-f) Calculate the following liquidity ratios for 2016. (Round average collection period to 0 decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period days b. Inventory turnover times