Lucky Furniture Store has the following balances in its financial statements for the past financial year: Sales - R1,854,200 Cost of sales – R1,534,200 Gross profit – R320,000 Inventory – R122,736 Receivables – R180,270 Cash – R245,472 Non-current assets – R1,448,594 Total assets – R2,671,594 Assuming a 360-day year, the average collection period is _____ days

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Q: mpany reports the following:

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Q: current assets

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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.