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 2 Income Statement Year 2 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 $10,826  1

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 2 Income Statement Year 2 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 $10,826 

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).