As the accounting manager of Spring Creek Plastics, Inc., you have been asked to calculate the following financial ratios for the company's 2015 annual report. Use the balance sheet and the income statement on page 528 for Spring Creek.
Spring Creek Plastics, Inc.
Balance Sheet As of December 31,2015
Assets  
Cash  $250,000  
Accounts Receivable  325,400  
Merchandise Inventory  416,800  
Marketable Securities  88,700  
Supplies  12,100  
Total Current Assets  $1,093,000  
Land and Building  1,147,000  
Fixtures and Equipment  868,200  
Total Property. Plant, and Equipment  2,015,200  
Total Assets  $3,108,200  
Liabilities and Owner's Equity  
Accounts Payable  $ 286,500  
Notes Payable (6month)  153,200  
Total Current Liabilities  $439,700  
Mortgage Payable  325,700  
Notes Payable (4year)  413,100  
Total LongTerm Liabilities  738,800  
Total Liabilities  1,178,500  
Owner's Equity  1,929,700  
Total Liabilities and Owner's Equity  $3,108,200 
Spring Creek Plastics, Inc. Income Statement, 2015
Net Sales  $1,695,900  
Merchandise Inventory. Jan. 1  $ 767,800  
Net Purchases  314,900  
Freight In  33,100  
Goods Available for Sale  1,115,800  
Merchandise Inventory. Dec. 31  239,300  
Cost of Goods Sold  876,500  
Gross Margin  819,400  
Total Operating Expenses  702,300  
Income before Taxes  117,100  
Taxes  35,200  
Net Income  $81,900 
Average collection period (credit sales are 60% of net sales):
To calculate: The average collection period where credit sales are
Spring Creek Plastic, Inc. 

Balance sheet 

As on December 31 2015 

Assets 
Amount (in $) 
Amount (in $) 
Cash 
$250,000 

Account Recoverable 
$325,400 

Merchandise inventory 
$416,800 

Marketable securities 
$88,700 

Supplies 
$12,100 

Total current assets 
$1,093,000 

Land and building 
$147,000 

Fixture and equipment 
$868,200 

Total Property, Plant and Equipment 
$2,015,200 

Total Assets 
$3,108,200 

Liabilities and Owner’s Equity 

Account payable 
$286,500 

Notes Payable (6month) 
$153,200 

Total current liabilities 
$439,700 

Mortgage payable 
$325,700 

Notes payable (4year) 
$413,100 

Total long term liabilities 
$738,800 

Total liabilities 
$1,178,500 

Owner’s Equity 
$1,929,700 

Total liabilities and owner’ equity 
$3,108,200 
Spring Creek Plastic, Inc. 

Income statement,2015 

Particular 
Amount (in $) 
Amount (in $) 
Net sales 
$1,695,900 

Merchandises inventory 
$767,800 

Net purchase 
$314,900 

Freight in 
$33,100 

Good available for sale 
$1,115,800 

Merchandise inventory, Dec.31 
$239,300 

Cost of goods sold 
$876,500 

Gross margin 
$819,400 

Total operating expenses 
$702,300 

Income before taxes 
$117,100 

Taxes 
$35,200 

Net income 
$81,900 
Given Information:
The provided balance sheet:
Spring Creek Plastic, Inc. 

Balance sheet 

As on December 31 2015 

Assets 
Amount (in $) 
Amount (in $) 
Cash 
$250,000 

Account Recoverable 
$325,400 

Merchandise inventory 
$416,800 

Marketable securities 
$88,700 

Supplies 
$12,100 

Total current assets 
$1,093,000 

Land and building 
$147,000 

Fixture and equipment 
$868,200 

Total Property, Plant and Equipment 
$2,015,200 

Total Assets 
$3,108,200 

Liabilities and Ownerâ€™s Equity 

Account payable 
$286,500 

Notes Payable (6month) 
$153,200 

Total current liabilities 
$439,700 

Mortgage payable 
$325,700 

Notes payable (4year) 
$413,100 

Total long term liabilities 
$738,800 

Total liabilities 
$1,178,500 

Ownerâ€™s Equity 
$1,929,700 

Total liabilities and ownerâ€™ equity 
$3,108,200 
Spring Creek Plastic, Inc. 

Income statement,2015 

Particular 
Amount (in $) 
Amount (in $) 
Net sales 
$1,695,900 

Merchandises inventory 
$767,800 

Net purchase 
$314,900 

Freight in 
$33,100 

Good available for sale 
$1,115,800 

Merchandise inventory, Dec... 
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