Use the information for Food Giant Company Ltd. for 2018 to calculate the following ratios, and to explain why you will use the ratios:

1. Accounts receivable turnover

2. Days' sales in receivables

3. Inventory turnover

The following information was taken from the records of Food Giant Company Ltd for 2018:

Inventory, 1 January 2018 Accounts receivable, 1 January 2018 Cost of goods sold Net sales Inventory, 31 December 2018 Accounts receivable, 31 December 2018

$ 40 000 130 000 160 000 350 000 55 000 120 000

Ratio calculation	Explanation
1.
2.
3.