Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,470,000. Assets were as follows: $ 133,000 850,000 426,000 536,000 $ 1,945,000 Cash Accounts receivable Inventory Net plant and equipment Total assets a. Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover b. In 20X2, sales increased to $5,870,000 and the assets for that year were as follows: $ 133,000 978,000 1,038,000 536,000 $ 2,685,000 Cash Accounts receivable Inventory Net plant and equipment Total assets Turnover Ratios times times times times Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times c. Is there an improvement or a decline in the total asset turnover? Decline O Improvement

Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,470,000. Assets were as follows: $ 133,000 850,000 426,000 536,000 $ 1,945,000 Cash Accounts receivable Inventory Net plant and equipment Total assets a. Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover b. In 20X2, sales increased to $5,870,000 and the assets for that year were as follows: $ 133,000 978,000 1,038,000 536,000 $ 2,685,000 Cash Accounts receivable Inventory Net plant and equipment Total assets Turnover Ratios times times times times Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times c. Is there an improvement or a decline in the total asset turnover? Decline O Improvement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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