Shine's has 100,000 common shares outstanding during 2016, Requirements inventory turnover, days' sales in inventory, and gross profit percentage for Shine's Companies for 2016. 2. Compute days' sales in receivables during 2016. Round dollar amounts to three decimal places. Assume all sales were on account. 3. What do these ratios say about Shine's Companies' ability to sell inventory and collect receivables? Requirement 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Shine's Companies for 2016 Compute the inventory turnover (Round your answer to two decimal places, XXX) The inventory tumover v times Compute the days' sales in inventory (Round interim calculations to two decimal places. X.XX and round your final answer to the nearest Whole day.) The days' sales in inventory - days rnmruto the nose nimtit norantana Rruind wir answer to the nearest tonth of a narrant xxar Enter your answer in each of the answer boxes Shine's has 100.000 common shares outstanding during 2016, Requirements 1. Compute the inventory tumover, days' sales in inventory, and gross profit percentage for Shine's Companies for 2016 2 Compute days' sales in receivables during 2016. Round dollar amounts to three decimal places. Assume all sales were on account 3. What do these ratios say about Shine's Companies' ability to sell inventory and collect receivables? Compute the gross profit percentage (Round your answer to the nearest tenth of a percent, XX%) The gross profit percentage = Requirement 2. Compute days' sales in receivables during 2016. Round dollar amounts to three decimal places. Assume all sales were on account (Round interim calculations to three decimal places answer to the nearest whole day) Days' sales in average receivables Requirement 3. What do these ratios say about Shine's Companies' ability to sell inventory and collect receivables? Assume the following industry averages, inventory tumover 44 days ces XXX and round your time Requirement 2. Compute days'sales in receivables during 2016. Round doll amounts to three decimal places Assume all sales were on account Round interactions to the dec answer to the nearest whole day) Days'ses in average receivables Todays ory Requirement 3. What do these fatos say about Shine's Companies'abaty to sell inventory and collect receivables? (Assume the following industry average inventory tumover s ens profit poroontage 34t and days sales in average receivation - 17 days). Shine's Companies have a high amount of inventory on hand and a inventory over ratio This could be an area to look at compare to the year and industry werage. They have a which is a The amount of time it takes to collect receivables some but this would depend on the prop Shine's Companies Income Statement Years Ended May 31, 2016 and 2015 2016 2015 Net Sales Cost of Goods Sold Interest Expense 57,200,000 $ 20,600,000 700,000 6,900,000 29,000,000 $ 41,100,000 29,300,000 630,000 8,400,000 2,770,000 All Other Expenses $ Net Income Balance sneer May 31, 2016 and 2015 Assets 2016 Liabilities 2016 2015 2015 12,900,000 Cash 10,800,000 2,200,000 $ 26,000,000 7,200,000 7,100,000 9,000,000 Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets 23.700,000 1,800,000 Total Current Liabilities $ 24,000,000 $ 10,000,000 Long-term Liabilities 5,400,000 Total Liabilities 37.400.000 8,200,000 Stockholders' Equity 1,800,000 Common Stock 13,000,000 27,200,000 Retained Earnings 33.100,000 28,000,000 Total Equity 46,100,000 55,200,000 Total Liabilities and Equity $ 83,500,000 $ 51.500.000 32,000,000 83,500,000 $ 13,000,000 18,500,000 31,500,000 55,200,000 $ Total Assets
