Jim Short’s Company makes clothing for schools. Sales in 20X1 were $4,490,000. Assets were as follows:

Cash	$	110,000
Accounts receivable		864,000
Inventory		493,000
Net plant and equipment		504,000
Total assets	$	1,971,000

a. Compute the following: (Round your answers to 2 decimal places.)

		Turnover Ratios
1.	Accounts receivable turnover		times
2.	Inventory turnover		times
3.	Fixed asset turnover		times
4.	Total asset turnover		times

+

b. In 20X2, sales increased to $5,040,000 and the assets for that year were as follows:

Cash

$

110,000

Accounts receivable

981,000

Inventory

1,007,000

Net plant and equipment

504,000

Total assets

$

2,602,000

		Turnover Ratios
1.	Accounts receivable turnover		times
2.	Inventory turnover		times
3.	Fixed asset turnover		times
4.	Total asset turnover		times

+

Compute the following: (Round your answers to 2 decimal places.)

c. Is there an improvement or a decline in the total asset turnover?

	Decline
	Improvement

Answer rating: 100% (QA)

1 Account receivable turnover SalesAccounts receivable 44... View the full answer