Accel's Companies, a home improvement store chain, reported the following summarized figures: Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Accel's has 10,000 common shares outstanding during 2018 Read the requirements Requirement 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Accel's Companies for 2018. Compute the inventory turnover (Round your answer to two decimal places, X.XX.) The inventory turnover - Cost of goods sold / Average merchandise Inventory - 3.66 times Compute the days' sales in inventory (Round interim calculations to two decimal places, XXX and round your final answer to the nearest whole day.) The days' sales in inventory 365 days / Inventory turnover - 100 days Compute the gross profit percentage (Round your answer to the nearest tenth of a percent, XX%) The gross profit percentage Gross profit/Net sales revenue - 30 % Requirement 2. Compute days' sales in receivables during 2018. Round intermediate calculations to three decimal places. Assume all sales were on account. (Round intermediate calculations to three decimal places, XXX and round your final answer to the nearest whole day) Days' sales in average receivables 365 days / Accounts receivable turnover ratio 57 days. Requirement 3. What do these ratios say about Accel's Companies' ability to sell inventory and collect receivables? (Assume the following industry averages Click to select your answer(s) and then click Check Answer All parts showing Clear All W S15-7 (book/static) E Question Help Accel's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) E (Click the icon to view the balance sheets.) Acce's has 10,000 common shares outstanding during 2018 Read the requirements Compute the days' sales in inventory. (Round interim calculations to two decimal places, X.XX and round your final answer to the nearest whole day.) The days' sales in inventory 365 days / Inventory turnover - 100 days. Compute the gross profit percentage. (Round your answer to the nearest tenth of a percent, XX%) The gross profit percentage- Gross profit/Net sales revenue 30 % Requirement 2. Compute days' sales in receivables during 2018. Round intermediate calculations to three decimal places. Assume all sales were on account. (Round Intermediate calculations to three decimal places, XXX and round your final answer to the nearest whole day.) Days' sales in average receivables = 365 days / Accounts receivable tumover ratio 57 days Requirement 3. What do these ratios say about Accel's Companies' ability to sell Aventory and collect receivables? (Assume the following industry averages inventory turnover = 4.4. days's sales in inventory = 82 days, gross profit percentage - 34.7% and days' sales in average receivables 8.17 days.) Accel's Companies have a high amount of inventory on hand and a high inventory turnover ratio. This could be an area to look at and compare to the prior year and industry average. They have a low gross profit percentage, which is a good indicator. The amount of time takes to collect receivables seems high, but this would depend on the credit terms Click to select your answer(s) and then click Check Answer, All parts showing Clear All Final Check * Income Statement Accel's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue 40,600 $ 28,400 Cost of Goods Sold Interest Expense 40,500 30,600 570 8,200 600 4,300 All Other Expenses 7,300 $ 1,130 Net Income Print Done 0 Balance Sheets Accel's Companies Balance Sheet May 31, 2018 and 2017 Assets 2018 Liabilities 2018 2017 2017 Cash $ 2,400 $ 13,200 10,300 Short-term Investments Accounts Receivable Merchandise Inventory 23,500 28,000 7,500 6,900 8,000 900 Total Current Liabilities 28,000 $ 13,900 9,000 Long-term Liabilities 5,200 Total Liabilities 41,900 8,600 Stockholders' Equity 1,500 Common Stock 11,000 25,200 Retained Earnings 29,900 29,000 Total Equity 40,900 54,200 82,800 $ Total Liabilities and Equity Other Current Assets Total Current Assets All Other Assets 52,800 30.000 82,800 $ 11,000 19,700 30,700 S 54,200 Total Assets Print Done