Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Gross Income..........$25,240,000 Total

Question:

Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation.

Gross Income..........$25,240,000

Total Sales........... 24,324,000

Total Credit Sales......... 18,785,000

Net Income............ 2,975,000

Cost of Goods Sold......... 12,600,000

Total Assets............ 10,550,000

Average Inventory......... 2,875,000

Average Receivables......... 3,445,000

a. Compute the receivable turnover ratio.

b. Compute the inventory turnover ratio.

c. Compute the asset turnover ratio.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.