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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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
Decline
O Improvement
Turnover Ratios
times
times
times
times
c. Is there an improvement or a decline in the total asset turnover?
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