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Suppose Evergreen Manufacturing has annual sales of $9.60 million, cost of goods sold of $5.85 million, average inventories of $975,000, and average accounts receivable of $1,200,000. Assuming that all of Evergreen's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?

Suppose Evergreen Manufacturing has annual sales of $9.60 million, cost of goods sold of $5.85 million, average inventories of $975,000, and average accounts receivable of $1,200,000. Assuming that all of Evergreen's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 3MC: Calculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and...
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Suppose Evergreen Manufacturing has annual sales of $9.60 million, cost of goods sold of $5.85 million, average inventories of $975,000, and average accounts receivable of $1,200,000. Assuming that all of Evergreen's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?
Transcribed Image Text:Suppose Evergreen Manufacturing has annual sales of $9.60 million, cost of goods sold of $5.85 million, average inventories of $975,000, and average accounts receivable of $1,200,000. Assuming that all of Evergreen's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?
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