Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the total sales are $227,551,500, the gross income is $236,133,000, the net income is $34,573,500, the COGS is $117,877,500, the total credit sales

Suppose the total sales are $227,551,500, the gross income is $236,133,000, the net income is $34,573,500, the COGS is $117,877,500, the total credit sales are $131,692,500, the average receivables are $4,637,000, the total assets are $14,198,000, and the average inventory is $6,894,000. Don't overthink the values just given (they are randomly generated, so some may seem abnormally high or low compared to each other based on normal relationships). Answer the following questions. Do not round your intermediate calculations (or if you do, go to at least 5 decimals for them). a. Compute the asset turnover ratio. Round your final answer to 3 decimal places (e.g., .14581 would be rounded to .146). Asset turnover ratio b. Compute the receivable turnover ratio. Round your final answer to 3 decimal places (e.g., .14581 would be rounded to .146). Receivable turnover ratio c. Compute the inventory turnover ratio. Round your final answer to 3 decimal places (e.g., .14581 would be rounded to .146). Inventory turnover ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a To compute the asset turnover ratio we use the formula Asset Turnover Ra... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

11th edition

978-1111530266

More Books

Students also viewed these Accounting questions