MAKO Inc. has annual credit sales of ₹12 lakhs and a net income of ₹90,000. Their balance sheet reflects an inventory of ₹4 lakhs, average accounts receivable of 2.4 lakhs, the total debt of ₹23 lakhs, and total equity of *25 lakhs. MAKO is open 365 days a year. Which one of the following is correct? Note: In the absence of cost of goods sold data, credit sales can be used. The total asset turnover is 25 O The average collection period is 73 days O The debt to asset ratio is 92% O The inventory turnover rate is 4
MAKO Inc. has annual credit sales of ₹12 lakhs and a net income of ₹90,000. Their balance sheet reflects an inventory of ₹4 lakhs, average accounts receivable of 2.4 lakhs, the total debt of ₹23 lakhs, and total equity of *25 lakhs. MAKO is open 365 days a year. Which one of the following is correct? Note: In the absence of cost of goods sold data, credit sales can be used. The total asset turnover is 25 O The average collection period is 73 days O The debt to asset ratio is 92% O The inventory turnover rate is 4
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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![MAKO Inc. has annual credit sales of ₹12 lakhs and a net income of ₹90,000.
Their balance sheet reflects an inventory of ₹4 lakhs, average accounts
receivable of 2.4 lakhs, the total debt of ₹23 lakhs, and total equity of *25
lakhs. MAKO is open 365 days a year. Which one of the following is correct?
Note: In the absence of cost of goods sold data, credit sales can be used.
The total asset turnover is 25
O The average collection period is 73 days
O The debt to asset ratio is 92%
O The inventory turnover rate is 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fadd7336c-9279-4b03-b8a2-dd294ab12211%2F2903c02f-3256-460d-8df8-05075f393772%2F159ysp_processed.png&w=3840&q=75)
Transcribed Image Text:MAKO Inc. has annual credit sales of ₹12 lakhs and a net income of ₹90,000.
Their balance sheet reflects an inventory of ₹4 lakhs, average accounts
receivable of 2.4 lakhs, the total debt of ₹23 lakhs, and total equity of *25
lakhs. MAKO is open 365 days a year. Which one of the following is correct?
Note: In the absence of cost of goods sold data, credit sales can be used.
The total asset turnover is 25
O The average collection period is 73 days
O The debt to asset ratio is 92%
O The inventory turnover rate is 4
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