Win's

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

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Win's

has

100,000

common shares outstanding during

2024.

Read the

requirements

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Question content area bottom

Part 1

Requirement 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for

Win's

Companies for

2024.

Compute the inventory turnover. (Round your answer to two decimal places, X.XX.)

The inventory turnover

=

=

times.

Part 2

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.

Part 3

Compute the gross profit percentage. (Round your answer to the nearest tenth of a percent, X.X.%)

The gross profit percentage

=

=

%.

Part 4

Requirement 2. Compute days' sales in receivables during

2024.

Round intermediate calculations to three decimal places. Assume all sales were on account. (Round intermediate calculations to three decimal places, X.XXX and round your final answer to the nearest whole day.)

Days' sales in average receivables

=

=

days.

Part 5

Requirement 3. What do these ratios say about

Win's

Companies' ability to sell inventory and collect receivables? (Assume the following industry averages; inventory turnover = 4.4, days's sales in inventory = 82 days, gross profit percentage = 34.7% and days' sales in average receivables = 8.17 days.)

Win's

Companies' have a high amount of inventory on hand and a

high

low

inventory turnover ratio. This could be an area to look at and compare to the prior year and industry average. They have a

high

low

gross profit percentage, which is a

bad indicator.

good indicator.

The amount of time it takes to collect receivables seems

high

low

,

but this would depend on the

accounting policy.

credit terms.

tax regulations.

.

Win's Companies

Income Statement

Years Ended May 31, 2024 and 2023

2024

2023

Net Sales Revenue

$55,400

$44,700

Cost of Goods Sold

27,700

29,300

Interest Expense

500

460

All Other Expenses

6,200

6,500

Net Income

$21,000

$8,440

Win's Companies
Balance Sheet
May 31, 2024 and 2023
Assets				Liabilities
	2024	2023			2024	2023
Cash	$2,100	$1,200		Total Current Liabilities	$29,000	$13,300
Short-term Investments	25,000	13,000		Long-term Liabilities	13,700	12,900
Accounts Receivable	7,200	5,700		Total Liabilities	42,700	26,200
Merchandise Inventory	7,300	8,200		Stockholders' Equity
Other Current Assets	9,000	2,500		Common Stock	13,000	13,000
Total Current Assets	50,600	30,600		Retained Earnings	28,900	14,400
All Other Assets	34,000	23,000		Total Equity	41,900	27,400
Total Assets	$84,600	$53,600		Total Liabilities and Equity	$84,600	$53,600