EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
17th Edition
ISBN: 9781260464900
Author: BLOCK
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 3, Problem 21P

Jim Short’s Company makes clothing for schools. Sales in 20X1 were $4,820,000 . Assets were as follows:

Chapter 3, Problem 21P, Jim Short’s Company makes clothing for schools. Sales in 20X1 were $4,820,000 . Assets were as , example  1

a . Compute the following: 1 . Accounts receivable turnover . 2 . Inventory turnover . 3 . Fixed asset turnover . 4 . Total asset turnover .

b. In 20X2, sales increased to $5,740,000 and the assets for that year were as follows:

Chapter 3, Problem 21P, Jim Short’s Company makes clothing for schools. Sales in 20X1 were $4,820,000 . Assets were as , example  2

Once again, compute the four ratios.

c. Indicate if there is an improvement or decline in total asset turnover, and based on the other ratios, indicate why this development has taken place.

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EBK FOUNDATIONS OF FINANCIAL MANAGEMENT

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