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The financial statements of Midwest Tours are given below

Finance

The financial statements of Midwest Tours are given below. 
Midwest Tours Income Statement (2009) 
Sales Cost of goods sold Gross profit $ 2,500,000 1,260,000 1,240,000 700,000 Selling 8, administrative expenses Operating profit 540,000 160,000 Interest expense Income before tax 380,000 152,000 Tax expense Net income $ 228,000 Balance Sheet 2009 2008 Cash $ 60,000 $ 50,000 Accounts receivable Inventory 500,000 300,000 450,000 270,000 Total current assets Fixed assets $ 860,000 2,180,000 $ 770,000 2,000,000 Total assets $ 3,040,000 $ 2,770,000 Accounts Payable $ 200,000 460,000 $ 170,000 440,000 Bank loan Total current liabilities $ 660,000 860,000 $ 610,000 860,000 Bond payable Total liabilities $ 1,520.000 $ 1,470,000 Common stock (130,000 shares) $ 120,000 1,400,000 $ 120,000 1,300,000 Retain. earnings Total liabilities & equity $ 3,040,000 $ 2,890,000 

Note: The common shares are trading in the stock market for $36 each.

 

Refer to the financial statements of Midwest Tours. The firm's average collection period for 2009 is

 

A.67.77.

B.68.52.

C.68.53.

D.69.35.

E.69.73.

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