Data from Adame Corporation's Most Recent Balance Sheet and Income

question 128

Essay

Data from Adame Corporation's most recent balance sheet and income statement appear below:
$\begin{array}{rr}&\text { This Year } & \text { Last Year } \\\text { Accounts receivable}&\$ 107,000 & \$ 116,000 \\\text {Inventory }&\$ 204,000 & \$ 174,000 \\\text {Sales on account }&\$ 799,000 & \\\text {Cost of goods sold }&\$ 524,000 &\end{array}$
Required:
Compute the average collection period for this year:

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Definitions:

Bud Scale Scars

Marks left on a twig after bud scales (which protect the bud during winter) fall off in the spring, indicating where new growth began.

Haustoria

Specialized structures of parasitic or symbiotic fungi and plants that penetrate the host's tissue to absorb nutrients.

Adventitious

Referring to structures that develop in an unusual place, such as roots growing from stems or leaves instead of from the plant's root system.

Taproots

A type of root system characterized by a single, large, central root that grows vertically downward and gives off smaller lateral roots.