Barga Co. reported net sales for 2015 and 2016 of $730,000 and $1,095,000, respectively

Barga Co. reported net sales for 2015 and 2016 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2015, $65,000; and December 31, 2016, $123,000. Calculate its days' sales uncollected at the end of each year. Round the number of days to one decimal. Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.

Carlos Ramirez and Camila Garza organized New World Book Store as a corporation

Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $71,900 cash to start the business and received 5,900 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $70,050; December 31, current year, amounts due from customers from sales of books, $43,000; unused portion of store and office equipment, $79,500; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,500, with interest due of $210. No dividends were declared or paid to the stockholders during the year.

Required:

1. Complete the following balance sheet as of the end of current year. Some information has been given below.

2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings] to solve for net income.)

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