Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow. Net sales $250,500 Cost of...
Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow. Net sales $250,500 Cost of goods sold 179,000 Average accounts receivable 20,730 Average inventory 4,145 Average property, plant, and equipment 75,705 Average total assets 126,127 Required: Round your answers to two decimal places. 1. Using this information, calculate Rutherford's receivable turnover ratio. 2. Using this information, calculate Rutherford's asset turnover ratio and also convert the ratio into days (rounded to the nearest whole day). Asset turnover ratio Conversion into days days
Homework Answers
1. Receivable turnover = Net Sales / Average receivables
>> Receivable turnover = $ 250,500 / $ 20,730
>> Receivable turnover = 12.10.
2. Asset turnover = Net Sales / Average Assets
>> Asset turnover = $ 250,500 / $ 126,127
>> Asset turnover = 2
>> Asset turnover in days = 365 / Asset turnover ratio
>>Asset turnover in days = 365 / 2
>> Asset turnover in days = 183 Days
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Asset Efficiency Ratios Selected financial statement numbers for
Rutherford Company follow. Net sales $250,500 Cost of...
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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 $5.7
million, and net income of $845,000. The following table shows the
company's comparative balance sheets for 2021 and 2020:
The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $5.7 million, and net income of $845,000. The following table shows the company's comparative balance sheets for 2021 and 2020:...
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The 2021 income statement of Anderson Medical Supply Company reported net sales of $10 million, cost of goods sold of $6.6 million, and net income of $890,000. The following table shows the company's comparative balance sheets for 2021 E and 2020: ($ in thousands) 2021 2020 $ 660 1,060 1,300 4,200 $ 7,220 $ 740 680 1,210 3,920 $ 6,550 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable...
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The 2021 income statement of Anderson Medical Supply Company
reported net sales of $11 million, cost of goods sold of $5.7
million, and net income of $845,000. The following table shows the
company's comparative balance sheets for 2021 and 2020:
The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $5.7 million, and net income of $845,000. The following table shows the company's comparative balance sheets for 2021 and 2020:...
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