arch 5. Asset Management (Efficiency) Ratios For the year ended 20Y0, the Accounts receivable (net) balance was $620,000, Inventories balance was $900,000, Property, plant, and equipment (net) balance was $3,240,000, and total assets was $8,445,000. Year 20Y2 Inventory turnover = Cost of goods sold / Average inventory Numerator Denominator Inventory Turnover 20Y1 Year 2012 20Y1 Competitor: 4.6 Industry Average: 7.4 = Number of Days' Sales in Receivables Average Accounts Receivables / Average Daily Sales (Note: Average daily sales is equal to sales/365) Numerator Denominator Days salesuncollected Competitor: 43.2 days Industry Average: 32.1 days Year Fixed assets turnover Sales / Average net fixed assets = Numerator Denominator 20Y2 20Y1 Year 2012 20Y1 TYOS Fixed assets turnover Competitor: 3.9 Industry Average: 4.0 Total assets turnover = Net sales/Average total assets Numerator Denominator Total assets turnover Competitor: 1.8 Industry Average: 2.1 Asset Management Evaluation: Should any of these ratios or the change in a ratio warrant concern for the managers of Stargel or the shareholders?