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1. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. a. Compute the accounts receivable turnover ratios

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1. 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. BEAN SUPERSTORE Comparative Balance Sheet December 31, 2017, 2018, and 2019 LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 $345,600 67,000 145,830 100,465 $658,895 $330,460 62,000 178,011 101,202 $671,673 $300,000 59,000 155,205 103,085 $617,290 $407,000 85,430 128,080 182,006 $802,516 $386,450 82,670 40,036 23,400 $532,556 $356,367 79,230 52,142 111,701 $599,440 Assets Cash Accounts Receivable Inventory Equipment Total Assets Liabilities Salaries Payable Accounts Payable Notes Payable Equity Common Stock Retained Earnings Total Liabilities and Equity $ 90,200 70,000 41,000 $ 88,563 71,670 50,650 $ 84,209 69,331 58,250 $ 95,100 62,430 63,222 $ 91,455 86,331 67,880 $ 89,467 87,197 68,312 $ 22,695 435,000 $658,895 $ 20,990 439,800 $671,673 $ 19,100 386,400 $617,290 $ 25,464 556,300 $802,516 $ 22,090 264,800 $532,556 $ 22,188 332,276 $599,440 BEAN SUPERSTORE Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 $1,256,300 $1,020,570 $967,478 500,000 580,320 465,780 756,300 440,250 501,698 200,000 175,450 169,422 556,300 264,800 332,276 Net Credit Sales Cost of Goods Sold Gross Margin Expenses Net Income (Loss) $1,000,000 450,000 550,000 115,000 435,000 $984,400 419,600 564,800 125,000 439,800 $875,350 388,950 486,400 100,000 386,400

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