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

Requirements
1. Compute the inventory turnover, days’ sales in inventory, and gross profit percentage for Accel’s Companies for 2024.
2. Compute days’ sales in receivables during 2024. Round intermediate calculations to three decimal places. Assume all sales were on account.
3. What do these ratios say about Accel’s Companies’ ability to sell inventory and collect receivables?

Transcribed Image Text:

ACCEL'S COMPANIES Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 $ 40,600 28,400 600 4,300 $ 7,300 2023 $ 40,500 30,600 570 8,200 $ 1,130