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10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash Accounts Receivable Inventory Equipment $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 90,200 70,000 41,000 $ 88,563 71,670 50,650 $ 84,209 69,331 58,250 $ 95,100 62,430 63,222 $ 91,455 86,331 67,880 $ 89,467 87,197 68,312 Equity Common Stock Retained Earnings Total Liabilities and Equity $ 20,990 439,800 $ 22,090 264,800 $ 22,695 $ 19,100 386,400 $ 25,464 $ 22,188 332,276 435,000 556,300 $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 BEAN SUPERSTORE LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Net Credit Sales $1,000,000 $984,400 $875,350 $1,256,300 $1,020,570 $967,478 Cost of Goods Sold 450,000 419,600 388,950 500,000 580,320 465,780 Gross Margin 550,000 564,800 486,400 756,300 440,250 501,698 125,000 175,450 169,422 Expenses Net Income (Loss) 115,000 100,000 200,000 435,000 439,800 386,400 556,300 264,800 332,276

10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash Accounts Receivable Inventory Equipment $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 90,200 70,000 41,000 $ 88,563 71,670 50,650 $ 84,209 69,331 58,250 $ 95,100 62,430 63,222 $ 91,455 86,331 67,880 $ 89,467 87,197 68,312 Equity Common Stock Retained Earnings Total Liabilities and Equity $ 20,990 439,800 $ 22,090 264,800 $ 22,695 $ 19,100 386,400 $ 25,464 $ 22,188 332,276 435,000 556,300 $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 BEAN SUPERSTORE LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Net Credit Sales $1,000,000 $984,400 $875,350 $1,256,300 $1,020,570 $967,478 Cost of Goods Sold 450,000 419,600 388,950 500,000 580,320 465,780 Gross Margin 550,000 564,800 486,400 756,300 440,250 501,698 125,000 175,450 169,422 Expenses Net Income (Loss) 115,000 100,000 200,000 435,000 439,800 386,400 556,300 264,800 332,276

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 7PA: Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then...
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10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Accounts Receivable Inventory Equipment Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 91,455 $ 90,200 70,000 41,000 $ 88,563 71,670 50,650 $ 84,209 69,331 58,250 $95,100 62,430 63,222 86,331 67,880 $ 89,467 87,197 68,312 Equity Common Stock Retained Earnings $ 22,695 435,000 $ 19,100 386,400 $ 22,090 $ 20,990 439,800 $ 25,464 556,300 $ 22,188 332,276 264,800 Total Liabilities and Equity $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 BEAN SUPERSTORE LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Net Credit Sales $1,000,000 $984,400 $875,350 $1,256,300 $1,020,570 $967,478 Cost of Goods Sold 450,000 419,600 388,950 500,000 580,320 465,780 Gross Margin Expenses Net Income (Loss) 550,000 564,800 486,400 756,300 440,250 501,698 115,000 125,000 100,000 200,000 175,450 169,422 435,000 439,800 386,400 556,300 264,800 332,276
Transcribed Image Text:10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Accounts Receivable Inventory Equipment Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 91,455 $ 90,200 70,000 41,000 $ 88,563 71,670 50,650 $ 84,209 69,331 58,250 $95,100 62,430 63,222 86,331 67,880 $ 89,467 87,197 68,312 Equity Common Stock Retained Earnings $ 22,695 435,000 $ 19,100 386,400 $ 22,090 $ 20,990 439,800 $ 25,464 556,300 $ 22,188 332,276 264,800 Total Liabilities and Equity $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 BEAN SUPERSTORE LEGUMES PLUS Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 Comparative Income Statement Year Ended December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Net Credit Sales $1,000,000 $984,400 $875,350 $1,256,300 $1,020,570 $967,478 Cost of Goods Sold 450,000 419,600 388,950 500,000 580,320 465,780 Gross Margin Expenses Net Income (Loss) 550,000 564,800 486,400 756,300 440,250 501,698 115,000 125,000 100,000 200,000 175,450 169,422 435,000 439,800 386,400 556,300 264,800 332,276
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