# The 2021 income statement of Anderson Medical Supply Company reported net sales of \$11 million, cost...

The 2021 income statement of Anderson Medical Supply Company reported net sales of \$11 million, cost of goods sold of \$5.4 million, and net income of \$830,000. The following table shows the company's comparative balance sheets for 2021 and 2020: (\$ in thousands) 2021 2020 \$ 420 820 1,200 3,000 \$5,440 \$ 500 560 1,000 2,720 \$4,780 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 \$1,080 1,500 1,600 1,260 \$5,440 \$ 950 1,500 1,600 7 30 \$4,780 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) times times Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio days times

Inventory turnover ratio = cost of goods sold / Average inventory

= 5.4/(1.2+1)/2

= 4.91 times

Receivable turnover ratio = sales / average accounts receivable

= 11/(0.82+0.56)/2

= 15.94 times

Average collection period = 365/ receivable turnover ratio

= 365/15.94

= 22.90 days

Assets turnover ratio = sales / average total assets

= 11/(5.44+4.78)/2

= 2.15 times

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