Low's Companies, a home improvement store chain, reported the following summarized figures:

Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Low's Companies for 2018.

Compute days' sales in receivables during 2018.

Round intermediate calculations to three decimal places. Assume all sales were on account.

What do these ratios say about Low's Companies' ability to sell inventory and collect receivables?

Low's CompaniesLow's has 30,000 common shares outstanding during 2018.

Income Statement

Years Ended May 31, 2018 and 2017

2018 2017

Net Sales Revenue $46,500 $39,800

Cost of Goods Sold 22,500 29,300

Interest Expense 700 460

All Other Expenses 6,200 8,400

Net Income $17,100 $1,640

Low's Companies

Balance Sheet

May 31, 2018 and 2017

Assets Liabilities

2018 2017 2018 2017

Cash $2,100 $1,300 Total Current Liabilities $22,000 $13,000

Short-term Investments 25,000 14,00 Long-term Liabilities 12,400 12,200

Accounts Receivable 7,100 5,700 Total Liabilities 34,400 25,200

Merchandise Inventory 7,300 7,200

Stockholders' Equity

Other Current Assets 7,000 2,400

Common Stock 9,000 9,000

Total Current Assets 48,500 30,600

Retained Earnings 39,100 19,400

All Other Assets 34,000 23,000

Total Equity 48,100 28,400

Total Assets $82,500 $53,600

Total Liabilities and Equity $82,500 $53,600