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Income Statement Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income Win's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 $ $ 42,400 $ 22,500 300 6,700 12,900 $ I 2023 38,800 23,700 280 7,100 7,720 Balance Sheets Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Cument Assets Total Current Assets All Other Assets Total Assets Assets $ $ 2024 2,100 $ 25,000 7,300 7,300 11,000 52,700 31,000 83.700 S 2023 I 1,300 Total Current Liabilides 13.000 Long-term Liabilities 5.500 Total Liabilities 7,500 1.700 Common Stock Liabilities 23,000 $ 13.300 36.300 Stockholders' Equity 29,000 Retained Eamings 25,000 Total Equity 54,000 Total Liabilities and Equity 2024 $ 10,000 37,400 47,400 83,700 S 2023 12,800 11,900 24,700 10,000 19.300 29,300 54,000 iRequirements 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win'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 Win's Companies' ability to sell inventory and collect receivables?

Income Statement Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income Win's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 $ $ 42,400 $ 22,500 300 6,700 12,900 $ I 2023 38,800 23,700 280 7,100 7,720 Balance Sheets Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Cument Assets Total Current Assets All Other Assets Total Assets Assets $ $ 2024 2,100 $ 25,000 7,300 7,300 11,000 52,700 31,000 83.700 S 2023 I 1,300 Total Current Liabilides 13.000 Long-term Liabilities 5.500 Total Liabilities 7,500 1.700 Common Stock Liabilities 23,000 $ 13.300 36.300 Stockholders' Equity 29,000 Retained Eamings 25,000 Total Equity 54,000 Total Liabilities and Equity 2024 $ 10,000 37,400 47,400 83,700 S 2023 12,800 11,900 24,700 10,000 19.300 29,300 54,000 iRequirements 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win'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 Win's Companies' ability to sell inventory and collect receivables?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Income Statement. Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income W Win's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 $ $ 42,400 S 22,500 300 6,700 12,900 $ - X 2023 38,800 23,700 280 7,100 7,720 Balance Sheets Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assets Assets $ $ 2024 2,100 $ 25,000 7,300 7,300 11,000 52.700 31,000 83,700 S I 1,300 Total Current Liabilities 13.000 Long-term Liabilities 5,500 Total Liabilities 7,500 1,700 Common Stock 2023 Liabilities 23,000 $ 13,300 36,300 Stockholders' Equity 29,000 Retained Earnings 25,000 Total Equity 54,000 Total Liabilities and Equity $ 2024 $ 10,000 37,400 47.400 83,700 S 2023 12,000 11,900 24,700 10,000 19,300 29,300 54,000 Requirements 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win'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 Win's Companies' ability to sell inventory and collect receivables?
Transcribed Image Text:Income Statement. Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income W Win's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 $ $ 42,400 S 22,500 300 6,700 12,900 $ - X 2023 38,800 23,700 280 7,100 7,720 Balance Sheets Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assets Assets $ $ 2024 2,100 $ 25,000 7,300 7,300 11,000 52.700 31,000 83,700 S I 1,300 Total Current Liabilities 13.000 Long-term Liabilities 5,500 Total Liabilities 7,500 1,700 Common Stock 2023 Liabilities 23,000 $ 13,300 36,300 Stockholders' Equity 29,000 Retained Earnings 25,000 Total Equity 54,000 Total Liabilities and Equity $ 2024 $ 10,000 37,400 47.400 83,700 S 2023 12,000 11,900 24,700 10,000 19,300 29,300 54,000 Requirements 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Win'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 Win's Companies' ability to sell inventory and collect receivables?
Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Win's has 30,000 common shares outstanding during 2024. Read the requirements. 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.
Transcribed Image Text:Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Win's has 30,000 common shares outstanding during 2024. Read the requirements. 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.
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