ASSET EFFICIENCY RATIOS Selected financial statement numbers for Frederick Company are given below.

Net sales $277,480 Cost of goods sold 179,000 Average accounts receivable 20,730 Average inventory 4,145 Average property, plant, and equipment 75,705 Average total assets 126,127 Required:

. Using this information, calculate Frederick’s receivable turnover ratio (round to two decimal places).

. Using this information, calculate Frederick’s asset turnover ratio and also convert the ratio into days.

Cornerstone Exercise