Compute and interpret the following ratios for RONA for fiscal years 2010 and 2011. Use these ratios
Question:
a. Current ratio
b. Quick ratio
c. Accounts receivable turnover ratio
d. Average collection period of accounts receivable
e. Inventory turnover ratio
f. Average number of days inventory on hand
g. Accounts payable turnover ratio
h. Average payment period for accounts payable
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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