Ch $4$ HW $2$ Calculating and Interpreting Accounts Receivable and Inventory Turnover Ratios

Calculating and Interpreting Accounts Receivable and Inventory Turnover Ratios.

LO $4-4$

Nucor and AK Steel are steel manufacturers. Nucor produces steel in mini$-$mills. Mini$-$mills transform scrap ferrous metals into standard sizes of rolled steel, which Nucor then sells to steel service centers and distributors. Its steel falls on the lower end in terms of quality $($strength and durability$).$

AK Steel is an integrated steel producer, transforming ferrous metals into rolled steel and then into various steel products for the automobile, appliance, construction, and other industries. Its steel falls on the higher end in terms of quality. Exhibit $4\mathrm{.}24$ sets forth various data for these two companies for two recent years.

Exhibit $4\mathrm{.}24.$ Selected Data for Nucor and AK Steel $($Amounts in Millions$)($Problem $4\mathrm{.}18)$

$\backslash$table$[[,$Year $2,$Year $1],[$Nucor$,,],[$Sales$,$$$23,663,$$$16,593$