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Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover.

Sagot :

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Answer:

1. 7.38 times

2.49.46 days

3.5.81 times

4.62.82 days

5.112.78 Days

6. 1.64 times

Explanation:

1. Calculation to determine Accounts receivable turnover

First step is to calculate Account Receivable

Account Receivable = (beginning Account Receivables + ending Account Receivables)/2

Account Receivable = ( $9100+12300)/2

Account Receivable = $ 10700

Now let calculate the Account Receivables Turnover Ratio

Account Receivables Turnover Ratio = Sales / average Account Receivables

Account Receivables Turnover Ratio= $79000/10700

Account Receivables Turnover Ratio=7.38 times

2) Calculation to determine Average collection period

Average Collection Period = 365/ Account Receivables turnover ratio

Average Collection Period= 365 days /7.38

Average Collection Period=49.46 days

3) Calculation to determine Inventory turnover

First step is to calculate the Average Inventory

Average Inventory = (beginning inventory + ending inventory)/2

Average Inventory= ( $9700+8200)/2

Average Inventory= $ 8950

Now let calculate the Inventory Turnover Ratio

Inventory Turnover Ratio = Cost of goods sold / average inventory

Inventory Turnover Ratio= $52000/8950

Inventory Turnover Ratio= 5.81 times

4). Calculation to determine Average sale period.

Average Sales period = 365/ inventory turnover ratio

Average Sales period= 365 days /5.81

Average Sales period= 62.82 days

5). Calculation to determine the Operating cycle

Operating Cycle = Average Sales Period + Average Collection Period

Operating Cycle =49.96+62.82

Operating Cycle = 112.78 Days

6) Calculation to determine Total asset turnover

Fire step is to calculate the Average Assets

Average Assets = (beginning Assets + ending Assets)/2

Average Assets= ( $45960+50280)/2

Average Assets= $ 48120

Now let calculate the Assets Turnover Ratio

Assets Turnover Ratio = Sales / average Assets

Assets Turnover Ratio= $79000/48120

Assets Turnover Ratio= 1.64 times

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