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Jim Shorts Company makes clothing for schools. Sales in 20X1 were $4,720,000. Assets were as follows: Cash $ 189,000 Accounts receivable 883,000 Inventory 444,000 Net
Jim Shorts Company makes clothing for schools. Sales in 20X1 were $4,720,000. Assets were as follows:
Cash | $ | 189,000 | |
Accounts receivable | 883,000 | ||
Inventory | 444,000 | ||
Net plant and equipment | 574,000 | ||
Total assets | $ | 2,090,000 | |
a. Compute the following: (Round your answers to 2 decimal places.)
Turnover Ratios
1.Accounts receivable times?
2.Inventory times?
3.Fixed asset times?
4.Total asset times?
b. In 20X2, sales increased to $5,220,000 and the assets for that year were as follows:
Cash | $ | 189,000 | |
Accounts receivable | 967,000 | ||
Inventory | 993,000 | ||
Net plant and equipment | 574,000 | ||
Total assets | $ | 2,723,000 | |
Compute the following: (Round your answers to 2 decimal places.)
1.Accounts receivable times?
2.Inventory times?
3.Fixed asset times?
4.Total asset times?
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