Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following.

A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019.

B. Compute the number of days’ sales in receivables ratios for each company for 2018 and 2019.

C. Determine which company is the better investment and why. Round answers to two decimal places.

Transcribed Image Text:

Assets Cash Accounts Receivable Inventory Equipment Total Assets Liabilities Salaries Payable Accounts Payable Notes Payable BEAN SUPERSTORE Comparative Balance Sheet December 31, 2017, 2018, and 2019 Equity Common Stock Retained Earnings Total Liabilities and Equity 2019 $345,600 67,000 145,830 100,465 $658,895 $ 90,200 70,000 41,000 $ 22,695 435,000 $658,895 2018 $330,460 62,000 178,011 101,202 $671,673 $ 88,563 71,670 50,650 $ 20,990 439,800 $671,673 2017 $300,000 59,000 155,205 103,085 $617,290 $ 84,209 69,331 58,250 $19,100 386,400 $617,290 LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 $407,000 $386,450 85,430 82,670 128,080 40,036 182,006 23,400 $802,516 $532,556 $ 95,100 62,430 63,222 $ 91,455 86,331 67,880 $ 25,464 $ 22,090 556,300 264,800 $802,516 $532,556 2017 $356,367 79,230 52,142 111,701 $599,440 $ 89,467 87,197 68,312 $22,188 332,276 $599,440