Lisa, Inc.

Statement of Financial Position

December 31, 2010

(in thousands)

                                                          2010        2009

Assets   

Current assets:     

   Cash                                                 $  30      $  25

   Trading securities                                       20          15

   Accounts receivable (net)                               45          30

   Inventories (at lower of cost of market)                 60         50

   Prepaid items                                           15         20

          Total Current Assets                           $170       $140

Long-term assets:   

  Long-term investments:     

    Available-for-sale investments                        $ 25      $ 20

  Property, plant & equipment:        

    Land (at cost)                                          75        75

    Building (net)                                          80        90

    Equipment (net)                                       95        100

  Intangible assets:     

     Patents (net)                                         35         17

    Goodwill (net)                                         20         13

          Total Long-Term Assets                       $330        $315

          Total Assets                                  $500        $455

Liabilities and Equity    

Current liabilities:      

  Notes payable                                         $ 23       $ 12

  Accounts payable                                        47        28

  Accrued interest                                        $ 15      $ 15

          Total current liabilities                          $ 85      $ 55

Long-term liabilities:        

  Long-term Notes payable 10% due 12/31/2012        $ 10      $ 10

  Bonds payable 12% due 12/31/2015                    15        15

          Total long-term debt                           $ 25      $ 25

          Total liabilities                                 $110      $ 80

Shareholders' Equity      

  Preferred stock - 5% cumulative, $100 par, nonparticipating      

     authorized, issued and outstanding, 1,000 shares    $100     $100

  Common stock - $10 par 20,000 shares authorized, 15,000      

     shares issued and outstanding                       150      150

  Additional paid-in capital - common                      75        75

  Retained earnings                                        65       50

          Total Equity                                    $390      $375

          Total Liabilities & Equity                        $500       $455

Assume net credit sales were $300,000 for 2010.  Lisa Inc.'s average collection period for 2010, using a

360-day year, was

A. 54 days.

B. 61 days.

C. 36 days.

D. 45 days.