Scenario: Pettijohn Inc.The balance sheet and income statement ...

[kmcolvin]

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Scenario: Pettijohn Inc.

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.       

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Balance Sheet (Millions of $)	2020
Assets	​
Cash and securities	$2,305.0
Accounts receivable	8,950.0
Inventories	16,200.0
Total current assets	27,455.0
Net plant and equipment	21,545.0
Total assets	$49,000.0
Liabilities and Equity
Accounts payable	$8,100.0
Notes payable	6,700.0
Accruals	5,300.0
Total current liabilities	20,100.0
Long-term bonds	10,900.0
Total debt	31,000.0
Common shares	7,370.0
Retained earnings	10,630.0
Total common equity	18,000.0
Total liabilities and equity	$49,000.0

Income Statement (Millions of $)	2020
Net sales	$69,500.0
Operating costs except depr’n	62,850.0
Depreciation	1,250.0
Earnings before interest and taxes (EBIT)	5,400.0
Less interest	1,232.0
Earnings before taxes (EBT)	4,168.0
Taxes	1375.4
Net income	$2,792.6
Other data:
Shares outstanding (millions)	200
Common dividends	$730
Interest rate on notes payable & L-T bonds	7%
Federal plus provincial income tax rate	33%
Year-end stock price	$88.50

Refer to Scenario: Pettijohn Inc. What is the firm’s days sales outstanding? Assume a 360-day year for this calculation.

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46.36

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47.28

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48.05

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49.00

[Hamad]

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[kmcolvin]

YES! Correct, THANKS for helping me on my review

[vickybb89]

Thanks for the timely response, appreciate it