Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,880,000. Assets were as follows...

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Answer 1

Answer #1

a.compute the following:

		turnover ratios
1.	accounts receivable turnover	5.94 times
2.	inventory turnover	11.43 times
3.	fixed asset turnover	9.44 times
4.	total asset turnover	2.59 times

working:

accounts receivable turnover = sales / accounts receivable

=>4,880,000/822,000

=>5.94

inventory turnover =>sales / inventory

=>4,880,000 / 427,000

=>11.43

fixed asset turnover = sales / net plant and equipment

=>4,880,000 / 517,000

=>9.44 times.

total asset turnover

=>sales / total assets

=>4,880,000 / 1,882,000

=>2.59 times.

b.compute the following:

		turnover ratios
1.	accounts receivable turnover	5.66 times
2.	inventory turnover	5.53 times
3.	fixed asset turnover	10.58 times
4.	total asset turnover	2.11 times

working:

accounts receivable turnover =5,470,000 / 967,000

=>5.66 times

inventory turnover = 5,470,000 / 990,000

=>5.53

fixed asset turnover = 5,470,000/517,000

=>10.58 times

total asset turnover =5,470,000 / 2,590,000

=>2.11 times.

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Answer 2

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Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,880,000. Assets were as follows...

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