Canadian Bacon Inc. financial statements are presented in the table below. Based

Question

Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, and using a 365-day year, calculate Average Day’s Cost of Goods Sold. Round the answers to two decimal places Balance Sheet December 31, 2015 Cash and marketable securities $187,000 Accounts payable $217,000 Accounts receivable $498,000 Notes payable $51,500 Inventories $799,000 Accrued expenses $58,300 Prepaid expenses $19,300 Total current liabilities $326,800 Total current assets $1,503,300 Long-term debt $215,400 Gross fixed assets $1,978,000 Par value and paid-in-capital $128,000 Less: accumulated depreciation $478,000 Retained Earnings $2,333,100 Net fixed assets $1,500,000 Common Equity 2,461,100 Total assets $3,003,300 Total liabilities and owner’s equity $3,003,300 Income Statement, Year of 2015 Net sales (all credit) $5,386,600.00 Less: Cost of goods sold $3,716,754.00 Selling and administrative expenses $329,000.00 Depreciation expense $138,000.00 EBIT $1,202,846.00 Interest expense $39,600.00 Earnings before taxes $1,163,246.00 Income taxes $465,298.40 Net income $697,947.60

Explanation / Answer

average day's cost of goods sold = COGS/365 DAYS

COGS = 3716754/365 DAYS

average day's cost of goods sold =3716754/365 DAYS = 10182.89

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