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The 2021 Income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net Income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) 2821 2820 times times days times $ 588 $ 660 988 640 1,688 3,800 $ 6,960 1,010 3,520 $ 5,830 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) $1,240 1,908 2,488 1,428 $ 6,968 $ 5,830 $1,110 1,900 2,400 420

The 2021 Income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net Income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) 2821 2820 times times days times $ 588 $ 660 988 640 1,688 3,800 $ 6,960 1,010 3,520 $ 5,830 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) $1,240 1,908 2,488 1,428 $ 6,968 $ 5,830 $1,110 1,900 2,400 420

Essentials Of Investments
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
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The 2021 Income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net Income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) 2821 2820 times times days times $ 588 $ 660 988 640 1,608 3,800 $ 6,960 1,010 3,520 $5,830 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) $1,240 1,908 2,488 1,428 $ 6,968 $ 5,830 $1,110 1,900 2,400 420
Transcribed Image Text:The 2021 Income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net Income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) 2821 2820 times times days times $ 588 $ 660 988 640 1,608 3,800 $ 6,960 1,010 3,520 $5,830 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) $1,240 1,908 2,488 1,428 $ 6,968 $ 5,830 $1,110 1,900 2,400 420
Expert Solution
Step 1

Inventory turnover ratio = Cost of goods sold/Average inventory

Receivable turnover = Net sales/Average accounts receivable

 

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