1412 Then divide the of days of sales that are still unpaid nable by the avwrage cnedit sales yper day to determine the numbr accounts Accounts receivable credit sales per day had s__ invested in accounts receivables at year-end 2008, Its sales per day were Sduring 2008 and its average collection period represented an improvemen/deterioration from the average 2. SciTronics wasdays. This collection period of days in 2005. A thind activity ratio is the inventory turnover ratio, which indicates the effectiveness with which the company is employing inventory. Since inventory ibs sales value), it is advisable to use cost of goods sold as the measure of activity iventory turnover figure is calculated by dividing cost of goods sold by inventory is recorded on the balance sheet at cost (not at Cost of goods sold Inventory apparently needed of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was S--It therefore had an inventory turnover of times. This represented an improvement/deterioration from_-times in 200 . which can be calculated by dividing the cost of goods sold by 365 days to determine the average cost of goods sold per day. Days of inventory is calculated by dividing the total inventory by the cost of goods sold per day A fourth and final activity ratio is the fixed asset turnover ratio, which measures the effectiveness of the company in utilizing its plant & equipment: Net sales Net fixed assets 4 SciTronics had net fixed assets of $ turnover ratio in 2008 was and sales of S times, an improvement/deterioration from in 2008. Its fixed asset times in 2005