Compute different financial ratios based on information presented in the tables below.

Chart 1

ABC Group 123 Company

Beginning accounts receivable $75,000 $92,000

Ending accounts receivable $125,000 $123,000

Net credit sales $324,000 $401,000

Chart 2

Balance Sheet Year 1 Income Statement Year 1 Balance Sheet Year Income Statement Year

Beginning Inventory $29,000 $10,826

Purchases $10,000 $7,435

Goods Available for Sale $39,000 $18,261

Ending Inventory $10,826 $5,980

Cost of Goods Sold $28,174 $12,281

Please complete the following

1. Complete each of the calculations listed below (A - C).

A. (Use Chart 1) You are an investor looking to contribute financially to either the ABC Group or the 123 Company. Based on the information provided:

• Compute the accounts receivable turnover ratio.
• Compute the number of days' sales in receivables ratio for both ABC Group and 123 Company (round all answers to two decimal places).
• Interpret the outcomes, stating which company you would invest in and why.

B. (Use Chart 2) Compute the inventory turnover ratio.

• Interpret the outcomes

C. (Use Chart 2) Compute the number of days' sales in inventory ratio.

• Interpret the outcomes

2. Interpret the outcomes for each of the calculations performed using chart 1 and chart 2 (A - C).