Asset turnover (Sales/Assets) Return on equity (Net Income/Stockholders' Equity) Income tax rate Return on sales (Net Income/Sales) Accounts payable turnover (Purchases/Accounts Payable) Accounts receivable turnover (Sales/Accounts Receivable) Interest Expenses / Sales Operating Cycle (Number of days in inventory + Number of days in receivables) Paragraph Y 5 54% 40% 9% 7.3 5 5 B I U A Ev Required: Compute the following ratios (assume that there are 365 days in the year): 5% 90 days + v ... 1. Inventory Turnover (Cost of goods sold / Inventory) 2. Cash conversion cycle (Operating cycle - No. of days of accounts payable)