Liberty Corporation reported the following financial statements:
Assume all sales are on credit. During 2019, Liberty’s days’ sales in receivables ratio Was (amounts rounded)
a. 34 days.
b. 30 days.
c. 32 days.
d. 28 days
Extracted text: LIBERTY CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents $ 2,450 $ 2,094 Accounts Receivable 1,813 1,611 Merchandise Inventory 1,324 1,060 1,709 2,120 Prepaid Expenses 7,296 6,885 Total Current Assets 18,500 15,737 Other Assets $ 25,796 $ 22,622 Total Assets Liabilities $ 7,230 $ 8,467 Current Liabilities 4,798 3,792 Long-term Liabilities Total Liabilities 12,028 12,259 Stockholders' Equity Common Stock, no par 6,568 4,363 Retained Earnings 7,200 6,000 Total Stockholders' Equity 13,768 10,363 Total Liabilities and Stockholders' Equity $ 25,796 $ 22,622 LIBERTY CORPORATION Income Statement Year Ended December 31, 2019 $ 20,941 Net Sales Revenue Cost of Goods Sold 7,055 13,886 Gross Profit 7,065 Operating Expenses 6,821 Operating Income 210 Interest Expense Income Before Income Taxes 6,611 2,563 Income Tax Expense $ 4,048 Net Income