Selected financial data for Shumway Ltd. are shown below. Instructions a. Calculate the following ratios for each
Question:
Selected financial data for Shumway Ltd. are shown below.
Instructions
a. Calculate the following ratios for each of 2024 and 2023:
1. Receivables turnover
2. Collection period
3. Inventory turnover
4. Days sales in inventory
5. Operating cycle
b. Based on the ratios calculated in part (a), what conclusion(s) can be drawn about the management of the receivables and inventory?
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Related Book For
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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