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Compute the following equations using the information provided. Please show work. AVG COLLECTION PERIOD- Accounts receivable/ (credit sales/ 365) INVENTORY TURNOVER- Cost of sales/ Average
Compute the following equations using the information provided. Please show work.
- AVG COLLECTION PERIOD- Accounts receivable/ (credit sales/ 365)
- INVENTORY TURNOVER- Cost of sales/ Average inventory
- FIXED ASSET TURNOVER- Sales/ Fixed assets
- TOTAL ASSET TURNOVER- Sales/ Total Assets
- DEBT RATIO- Total debt- Total assets
- DEBT TO EQUITY RATIO- Total Debt/ Total Equity
- TIMES INTEREST EARNED- Earnings before interest & taxes (EBIT)/ Interest charges
- FIXED CHARGE COVERAGE- EBIT+ Lease payments/ Interest + Lease Payments+ Preferred stock Dividends before tax+ before tax sinking fund
- GROSS PROFIT MARGIN- Sales- Cost of Sales/ Sales
- NET PROFIT MARGIN- Earnings after taxes (EAT)/ Sales
- RETURN ON INVESTMENT- Earnings after taxes (EAT)/ Total Assets
- RETURN ON SE- Earnings after taxes (EAT)/ Stockholders Equity
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