• STU Inc. wants to assess its efficiency using efficiency ratios. The financial data for the year is as follows:

  • Cost of Goods Sold: $300,000
  • Average Inventory: $50,000
  • Accounts Receivable: $40,000
  • Sales Revenue: $500,000

• Calculate the following efficiency ratios:

  • Inventory Turnover Ratio
  • Accounts Receivable Turnover Ratio