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Rapid River, Inc., makes fine wooden kayak and canoe paddles that are well liked by vendors and customers. However, the company is not viewed as
Rapid River, Inc., makes fine wooden kayak and canoe paddles that are well liked by vendors and customers. However, the company is not viewed as well managed by lenders and investors. The board of directors wants to expand operations by purchasing a new building and equipment to expand production, replacing the old rented buildings and equipment, and expanding sales into new markets. You were recently hired as CFO to help manage the finances of the company. In your first week, the CEO meets with the board of directors and sends you a memo expressing their concerns. Use the information provided in the exhibits to calculate the following ratios for Year 2. The information in the Analytics Definitions exhibit must be used for any financial metric calculations. Enter the appropriate amounts in the associated cells. Round to the nearest hundredth as you go. Ratio Turnover Days 1. Accounts receivable 2 2. Inventory 3. Payables
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