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The following is Adell Furniture's financial information Balance Sheet as of December 31 (S million) 2015 2016 Assets Income Statement, 2016 (S million) Sales $
The following is Adell Furniture's financial information Balance Sheet as of December 31 (S million) 2015 2016 Assets Income Statement, 2016 (S million) Sales $ 30,710 Cost of Goods Sold $ 18,470 Depreciation $ 6,132 interest s 744 Taxes $ 1,824 Net Income $ 3,540 Cash Account Receivables Inventory S 850 S 126 $ 1,210 $ 1,370 $ 4,350 $ 4,610 $ 21,900 $ 24,300 $ 28,310 $30,406 Net Fixed Assets Total Assets 350 Shares Outstanding (in million) Market Price of a Stock Liabilities and Equity Account Payables Short-term Notes Payable Long-term Debt Common Stock $28.50 $ 1,080 $ 970 $ 500 $ $ 11,900 $13,500 $ 6,000 $ 6,200 $ 8,830 $ 9,736 $28,310 $30,406 Retained Earnings Total Liabilities and Equity You want to find out if Adell Furniture is good at MANAGING INVENTORY TO GENERATE SALES in 2016. (1) What ratio should you compute? (4points) The ratio is (2) What is your interpretation on the computed ratio on (1)? (Round up to the 2nd decimal) (3points) The interpretation is
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