Concept explainers
Ratio Analysis:
Ratio analysis is a tool to analyze the financial statements of a company which helps to express a mathematical relationship among the items of financial statements.
Receivables turnover ratio:
Receivables turnover ratio is an activity ratio, which measures the ability of the company to collect cash from its customers. This ratio also indicates the manner in which the company extends its credit policy and efficient collection of debts. It can be calculated by using the following formula:
The receivables turnover ratio of Company UC.
Inventory turnover ratio:
Inventory turnover ratio is used to determine the number of times inventory used or sold during the particular accounting period. It helps to measure the efficiency of inventory management. It can be calculated by using the following formula:
The inventory turnover ratio.

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Chapter 4 Solutions
INTERMEDIATE ACCOUNTING (ACCT 4950)
- Could you help me solve this financial accounting question using appropriate calculation technical.arrow_forwardPlease provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardNo AI Describe how inventory is valued under FIFO and LIFO methods.arrow_forward
- Please provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardI need help with this financial accounting question using the proper accounting approach.arrow_forward2. What is the mean profit margin as a percent of sales at Exotic Fruits? Round to 2 decimal places. 3. Of all the SKUs sold at Exotic Fruits, what is the maximum profit margin as a percent of sales at Exotic Fruits? Round to 3 decimal places. Pleae help me with these problems!arrow_forward
- Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
