Financial Statements for Oratz Company Appear Below Total Dividends During Year 2 Were

question 142

Multiple Choice

Financial statements for Oratz Company appear below:

$\begin{array}{|l|r|}\hline&\text { Oratz Company } \\&\text { Income Statement } \\&\text { For the Year Ended December 31, Year } \\&2\\&\text { (dollars in thousands) }\\\hline \text { Sales (All on Account) } & \$ 1630 \\\hline \text { Costs of Goods Sold } & \$ 1140 \\\hline \text { Gross Margin } & \$ 490 \\\hline \text { Operating Expenses } & \$ 190 \\\hline \text { Net Operating Income } & \$ 300 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 270 \\\hline \text { Income Taxes (30\%) } & \$ 81 \\\hline \text { Net Income } & \$ 189\\\hline\end{array}$

Total dividends during Year 2 were $\$ 139,000$ , of which $\$ 6,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 260$ .


-Oratz Company's average sale period (turnover in days) for Year 2 was closest to which of the following?

• A) 29.1 days.
• B) 40.3 days.
• C) 41.6 days.
• D) 57.6 days.

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