Chart 1

ABC Group123 CompanyBeginning accounts receivable;$75,000$92,000Ending accounts receivable$125,000$123,000Net credit sales$324,000$401,000

Chart 2

Balance Sheet Year 1Income Statement Year 1Balance Sheet YearIncome Statement YearBeginning Inventory

$29,000$10,826Purchases$10,000$7,435Goods Available for Sale$39,000$18,261Ending Inventory$10,826$5,980Cost of Goods Sold$28,174$12,281$10,826

Please complete the following tasks:

1. Complete each of the calculations listed below (A - C).

A. (Use Chart 1) You are an investor looking to contribute financially to either the ABC Group or the 123 Company. Based on the information provided:

• Compute the accounts receivable turnover ratio.
• Compute the number of days' sales in receivables ratio for both ABC Group and 123 Company (round all answers to two decimal places).
• Interpret the outcomes, stating which company you would invest in and why.

B. (Use Chart 2) Compute the inventory turnover ratio.

• Interpret the outcomes

C. (Use Chart 2) Compute the number of days' sales in inventory ratio.

• Interpret the outcomes

2. Interpret the outcomes for each of the calculations performed using chart 1 and chart 2 (A - C).