Samuel's Companies, operating educational tutoring centers, reported the following summarized figures: Samuel's Companies Income Statement Years Ended May 31, 2020 and 2019 2020 2019 Net Sales $57,130,000 $41,140,000 Cost of Goods Sold 27,680,000 29,400,000 Interest Expense 693,000 622,000 All Other Expenses 6,810,000 8,410,000 Net Income $21,947,000 $2,708,000 Samuel's Companies Balance Sheet May 31, 2020 Assets Cash 8,550,000 Short-term Invest. 25,900,000 Accounts Receivable 5,840,000 Merchandise Inventory 2,000,000 Other Current Assets 9,070,000 Total Current Assets 51,360,000 All Other Assets 31,930,000 Total Assets 83,290,000 Liabilities Total Current Liab. 23,950,000 Long-term Liab. 13,300,000 Total Liabilities 37,250,000 Stockholders' Equity Common Stock 13,040,000 Retained Earnings 33,000,000 Total Equity 46,040,000 Total Liab. + Equity 83,290,000 Samuel's Companies Balance Sheet May 31, 2019 Assets Cash 6,710,000 Short-term Invest. 10,100,000 Accounts Receivable 5,540,000 Merchandise Inventory 3,100,000 Other Current Assets 1,640,000 Total Current Assets 27,090,000 All Other Assets 28,160,000 Total Assets 55,250,000 Liabilities Total Current Liab. 12,810,000 Long-term Liab. 10,900,000 Total Liabilities 23,710,000 Stockholders' Equity Common Stock 13,140,000 Retained Earnings 18,400,000 Total Equity 31,540,000 Total Liab. + Equity 55,250,000 Samuel's has 1,000,000 common shares outstanding during 2020. 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Samuel's Companies for 2020. (Cost of goods sold) / (Average merchandise inventory) = Inventory turnover ( $ / ($ (365 days) / (Inventory turnover ) = = Day's sales in inventory /( = ( Gross profit) / ( Net sales revenue) = Gross profit percentage ( $ / ( $ = %) 2. Compute days' sales in receivables during 2020. Assume all sales were on account. (Net credit sales) / (Average net accounts receivables) = Accounts receivable turnover ratio ( $ ) / ($ = (365 days) / (Accounts receivable turnover ratio) ) / ( = = Day's Sales in Receivables