Question
Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The companys stock
Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The companys stock is traded on the NASDAQ and has provided investors with significant returns over the past few years. Selected information from the companys balance sheet follows. For 2012, the company reported sales revenue of $3,708,000 and cost of goods sold of $1,515,815. |
CINTAS Balance Sheet (in thousands) | |||||
2012 | 2011 | ||||
Cash | $ | 35,361 | $ | 38,927 | |
Marketable securities | 202,540 | ||||
Accounts receivable | 408,886 | 389,908 | |||
Inventories | 231,748 | 198,011 | |||
Prepaid expense and other | 15,793 | 15,793 | |||
Accounts payable | 64,623 | 71,653 | |||
Accrued compensation and related liabilities | 70,773 | 95,381 | |||
Accrued liabilities | 263,521 | 239,076 | |||
Accrued tax liability | 2,561 | ||||
Long-term debt due within one year | 4,156 | 26,665 | |||
Required: |
Compute the current ratio, inventory turnover ratio, and accounts receivable turnover ratio (assuming that 60 percent of sales were on credit). (Round your answers to 1 decimal place.) |
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