Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,490,000. Assets were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover a. Compute the following: Note: Round your answers to 2 decimal places. $ 110,000 864,000 Cash Accounts receivable Inventory Net plant and equipment Total assets 493,000 504,000 $ 1,971,000 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios 5.00 times 1,245.00 times b. In 20X2, sales increased to $5,040,000 and the assets for that year were as follows: 76.00 times 43.00 times $ 110,000 981,000 1,007,000 504,000 $ 2,602,000 Compute the following: Note: Round your answers to 2 decimal places. Turnover Ratios 234.00 times 789.00 times 41.00 times 32.00 times
Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,490,000. Assets were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover a. Compute the following: Note: Round your answers to 2 decimal places. $ 110,000 864,000 Cash Accounts receivable Inventory Net plant and equipment Total assets 493,000 504,000 $ 1,971,000 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios 5.00 times 1,245.00 times b. In 20X2, sales increased to $5,040,000 and the assets for that year were as follows: 76.00 times 43.00 times $ 110,000 981,000 1,007,000 504,000 $ 2,602,000 Compute the following: Note: Round your answers to 2 decimal places. Turnover Ratios 234.00 times 789.00 times 41.00 times 32.00 times
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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.
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Transcribed Image Text:Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,490,000. Assets were as follows:
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
Cash
Accounts receivable
Inventory
$ 110,000
864,000
493,000
504,000
$ 1,971,000
b. In 20X2, sales increased to $5,040,000 and the assets for that year were as follows:
Net plant and equipment
Total assets
Turnover Ratios
5.00 times
1,245.00 times
76.00 times
43.00 times
1. Accounts receivable turnover
2. Inventory turnover
3. Fixed asset turnover
4. Total asset turnover
$ 110,000
981,000
1,007,000
504,000
$ 2,602,000
Compute the following:
Note: Round your answers to 2 decimal places.
Turnover Ratios
234.00 times
789.00 times
41.00 times
32.00 times
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