December 31 2018 2017 Great Oaks Furniture Balance Sheets Assets Cuma Assa's Cash Accounts receivable Inventory Prepaid expenses Total current assets Building and equipment, net Total assets $ 41,200 570,000 5,070,000 83,800 5,765,000 1,097,000 $6,862,000 $ 53,000 443,000 4,841,000 78,000 5,415,000 1,095,000 $6,510,000 Liabilities and Stockholders' equity Cuma Kabildes Accounts payable Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities Shukra 's Common stock Retained earnings Total stockholders' equity Total liab, and stockholders' equity $ 604,000 679,000 213,000 1,496,000 1,729,000 3,225,000 $ 624,000 625,000 313,000 1,562,000 1,797,000 3,359,000 1,359,000 2,278,000 3,637,000 $6,862,000 1,359,000 1,792,000 3,151,000 $6,510,000 Year Ended December 31 2018 2017 $5,568,000 $5,253,000 2,840,000 2,627,000 2,728,000 2,626,000 Great Oaks Furniture Statements of Earnings Net sales Cost of goods sold Gross margin Operating expenses: Selling expenses General and admin. expenses Total operating expenses Operating income Interest expense Income before taxes Income taxes Net income 501,000 835,000 1,336,000 1392,000 139,000 1253,000 439,000 814,000 630,000 788.000 1,418,000 1,208,000 158,000 1,050,000 368,000 $ 682,000 $ Renmired Calculate asset turnover, accounts receivable turnover, days' sales in receivables, 3 inventory turnover, and days' sales in inventory for 2017 and 2018 Accounts receivable turnover 2018 $5,568,000 $ 506,500 - 10.99 2017 $5,253,000 $ 506,500 - 10.37 Average Collection Period 2018 365 10.99 - 33.20 2017 365 10.37 - 35.19 Inventory turnover 2018 $2,840,000 $4,955,500 - 0.57 2017 $2,840,000 $4,955,500 - 0.57 Average sale period 2018 365 0.57 - 636.89 2017 365 0.57 - 636.89 - - Amounts may differ from solutions manual due to rounding. How well does Great Oaks Furniture appear to manage its accounts receivable and inventory? What suggestions do you have for the company