Use the following information for Short Exercises $17-6 through $17-10 Accel's Companies, a home improvement store chain, reported the following ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 40,600 28,400 2017 40,500 30,600 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 600 570 4,300 $ 7,300 8,200 $ 1,130 938 chapter 17 Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash Short-term Investrments Accounts Recelvable s 2,400 28,000 7.500 6.900 8000 52,800 30,000 5 82,800 s 900 Total Current Liabilities 5 28,000 9,000 Long-term Liabilities %20 Total uablities 8,600 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity 54.200 Total Liabilities and Equity Stockholders' Equity Other Current Assets Total Current Assets All Other Assets Total Aswets 11,000 23,900 40.900 82.800 11,000 19,700 $ 942 Accels has 10,000 common shares outstanding during 2018 Learning Objective 4 $17-6 Evaluating current ratio Requirements 1. Compute Accel's Companics' current ratio at May 31, 2018 and 2017. 2. Did Accel's Comparies' current ratio improve, deteriorase, or hold saeady during 201s Learning Objective 4 S17-7 Computing inventory, gross profit, and receivables ratios Requirements 1. Compute the inventory turnover, days' sales in inventory, and gross prof percentage for Accel's Companies for 2018 2. Compute days' sales in reccivablks during 2018. Round intermediate caloulations three decimal placcs. Assume all sales were on account. 3. What do these ratios say about Accel's Companies' ability to sell invennory and collect receivables? Learning Objective 4 S17-8 Measuring ability to pay liabilities Requirements 1. Compute the debe ratio and the debt to equity ratio at May 31,2018, for Accels 2. Is Accels ability to pay its liabilties strong or weak? Explain your reasoning 17-9 Measuring profitability Learning Objective 4 Requirements 1. Compute the profit margin ratio for Accel's Companies for 2018 2. Compute the rate of return on total assets for 2018 3. Compute the asset turnover ratio for 2018 4. Compute the rate of return on common stockholders' equiry for 2018 5. Are these rates of return strong or weak- Explain your reasoning $17-10 Computing EPS and P/E ratio Learni Requirements 1. Compute earnings per share (EPS) for 2018 for Accel's. Round to the nearest cent 2. Compute Accel's Companies' price/earnings ratio for 2018. The market price per share of Accel's stock is $12.50 3. What do these results mean when evaluating Accel's Companies' profitability