Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following.BEAN SUPERSTOREComparative Balance SheetDecember 31, 2017, 2018, and 2019 201920182017Assets Cash$346,600 $330,460 $300,000 Accounts Receivable65,000 65,000 59,000 Inventory145,830 178,011 155,205 Equipment100,465 101,202 103,085 Total Assets$657,895 $674,673 $617,290 Liabilities Salaries Payable$90,200 $88,563 $84,209 Accounts Payable70,000 71,670 69,331 Notes Payable42,000 50,650 58,250 Equity Common Stock22,695 21,490 19,100 Retained Earnings433,000 442,300 386,400 Total Liabilities and Equity$657,895 $674,673 $617,290 LEGUMES PLUSComparative Balance SheetDecember 31, 2017, 2018, and 2019 201920182017Assets Cash$407,000 $388,450 $356,367 Accounts Receivable85,430 82,670 79,230 Inventory128,080 40,036 52,142 Equipment182,006 23,400 111,701 Total Assets$802,516 $534,556 $599,440 Liabilities Salaries Payable$95,300 $91,455 $89,467 Accounts Payable62,430 86,331 87,197 Notes Payable63,222 67,880 68,312 Equity Common Stock25,464 23,090 22,188 Retained Earnings556,100 265,800 332,276 Total Liabilities and Equity$802,516 $534,556 $599,440 BEAN SUPERSTOREComparative Income StatementYear Ended December 31, 2017, 2018, and 2019 201920182017Net Credit Sales$1,000,000 $984,400 $875,350 COGS460,000 419,600 388,950 Gross Margin$540,000 $564,800 $486,400 Expenses115,000 126,000 100,000 Net Income (Loss) $425,000 $438,800 $386,400 LEGUMES PLUSComparative Income StatementYear Ended December 31, 2017, 2018, and 2019 201920182017Net Credit Sales$1,256,300 $1,020,570 $967,478 COGS500,000 580,320 465,780 Gross Margin$756,300 $440,250 $501,698 Expenses200,000 174,450 169,422 Net Income (Loss) $556,300 $265,800 $332,276 A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. Round your answers to two decimal places. Bean SuperstoreLegume PlusART 2018fill in the blank 1 timesfill in the blank 2 timesART 2019fill in the blank 3 timesfill in the blank 4 timesB. Compute the number of days’ sales in receivables ratios for each company for 2018 and 2019. Assume 365 days a year. Round your answers to two decimal places. Bean SuperstoreLegume PlusDays' Sales 2018fill in the blank 5 daysfill in the blank 6 daysDays' Sales 2019fill in the blank 7 daysfill in the blank 8 days

The accounts receivable turnover ratio is a efficiency ratio. It shows how efficient a company to…

Answered: A. Compute the accounts receivable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following.

BEAN SUPERSTORE Comparative Balance Sheet December 31, 2017, 2018, and 2019
	2019	2018	2017
Assets
Cash	$346,600	$330,460	$300,000
Accounts Receivable	65,000	65,000	59,000
Inventory	145,830	178,011	155,205
Equipment	100,465	101,202	103,085
Total Assets	$657,895	$674,673	$617,290
Liabilities
Salaries Payable	$90,200	$88,563	$84,209
Accounts Payable	70,000	71,670	69,331
Notes Payable	42,000	50,650	58,250
Equity
Common Stock	22,695	21,490	19,100
Retained Earnings	433,000	442,300	386,400
Total Liabilities and Equity	$657,895	$674,673	$617,290

LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019
	2019	2018	2017
Assets
Cash	$407,000	$388,450	$356,367
Accounts Receivable	85,430	82,670	79,230
Inventory	128,080	40,036	52,142
Equipment	182,006	23,400	111,701
Total Assets	$802,516	$534,556	$599,440
Liabilities
Salaries Payable	$95,300	$91,455	$89,467
Accounts Payable	62,430	86,331	87,197
Notes Payable	63,222	67,880	68,312
Equity
Common Stock	25,464	23,090	22,188
Retained Earnings	556,100	265,800	332,276
Total Liabilities and Equity	$802,516	$534,556	$599,440

BEAN SUPERSTORE Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019
	2019	2018	2017
Net Credit Sales	$1,000,000	$984,400	$875,350
COGS	460,000	419,600	388,950
Gross Margin	$540,000	$564,800	$486,400
Expenses	115,000	126,000	100,000
Net Income (Loss)	$425,000	$438,800	$386,400

LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019
	2019	2018	2017
Net Credit Sales	$1,256,300	$1,020,570	$967,478
COGS	500,000	580,320	465,780
Gross Margin	$756,300	$440,250	$501,698
Expenses	200,000	174,450	169,422
Net Income (Loss)	$556,300	$265,800	$332,276

A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. Round your answers to two decimal places.

	Bean Superstore	Legume Plus
ART 2018	fill in the blank 1 times	fill in the blank 2 times
ART 2019	fill in the blank 3 times	fill in the blank 4 times

B. Compute the number of days’ sales in receivables ratios for each company for 2018 and 2019. Assume 365 days a year. Round your answers to two decimal places.

	Bean Superstore	Legume Plus
Days' Sales 2018	fill in the blank 5 days	fill in the blank 6 days
Days' Sales 2019	fill in the blank 7 days	fill in the blank 8 days

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