Jones Awenue Tire Company has been operating in Winnipez for more than $30$ years and has a very loyal customer base. The company

sells and installs tires and the cwners pride themselves on the excellent business relationships they have develapad with both their

customers and suppliers. The company often sells tires on credit, allowing customars to pay thair balances within $30$ days. Collection

of accounts receivable has never been a problem, with most people paying their balances within $60$ daya.

Jones Avenue purchases tirss from most of the large national brands and, due to the nature of the business, generally maintains a fairly

large inventory. It is essential that the company have the necessary tires on hand to mest customer needs due to increased

competition from large retailers such as Canadian Tire and Walmart.

The company has always had sufficient cash to pay its suppliers immediately and taks advantage of cash discounts. However, this

month, for the first time ever, Jones Avanue does not have sufficient cash in the bank to mest its supplier payments. Chris Jones, son of

the original owner, Ernest Jones, is currently operating the business and is very concerned about the company's inability to maintain

what he fesls are adequate levels of cash.

Your firm has been the accountants for Jones Avenue Tire Company for the past $20$ years. Chris has approached the firm expressing

his concerns and asking for advice on how to solve the cash flow problems. As part of your analysis, you review the company's financial

statements for the past thres years. Excerpts from the financial statements are prasented below.

During $2024,$ credit sales and cost of goods sold were $$138,040$ and $$82,500,$ respectively. The $2023$ and $2022$ credit sales wers

$$151,200$ and $$151,840,$ respectively, and the coat of goods sold for the same periods were $$79,950$ and $$82,325,$ respectively. The

accounts receivable and inventory balances at the end of $2021$ were $$6,900$ and $$85,000,$ respectively.

$($a$1)$

Using the above data, calculate the following ratics: $($Round receivables turnover ratio and average collection period to $1$ decimal place, es$.$

$15\mathrm{.}2$ days to sell imventary to $0$ decimal places, eg$.152$ and all other answers to $2$ decimal places, es$.15\mathrm{.}25.$ Use $365$ days for calculation.$)$