Assume that for the 2013 fiscal year, AstroCo reported sales revenue of $2.8 billion and cost of
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Assume that for the 2013 fiscal year, AstroCo reported sales revenue of $2.8 billion and cost of goods sold of $1.6 billion.
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Assuming that all sales are on credit, compute the current ratio (rounded to two decimal places), inventory turnover ratio (rounded to one decimal place), and accounts receivable turn- over ratio (rounded to one decimal place) for 2013. Explain what each ratio means for AstroCo?
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,...
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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