00 LO %24 JE Use the following information for this and the next three questions. Southern Mountain Outfitters, Inc. (SMO) has a gross profit margin of 30% on sales of $9,000,000. All its sales are on credit. Its balance sheet shows that Current Assets = $2,000,000; Current Liabilities= $3,000,000; and Accounts Receivables = $500,000. The inventory turnover for the company is 9 times. %3D %3D What is the average collection period for SMO? O 18.00 O 14.40 20.28 25.35 QUESTION 28 What is the amount of inventory for SMO? O $800,000 $2,700,000 O $700,000 O $7,200,000 QUESTION 29 If only 80% of the sales are credit, what is the average collection period for SMO? (Hint: The revised Receivable Turnover Ratio = Credit Sales / Accounts Receivable) O 20.28 O 18.00 14.40 O 25.35 QUESTION 30 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air 0唱 F3 esc 000 000 F1 DD F2 F4 F5 F8 # - 2 4 3. R. 一 >

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.