Rumsford Inc.'s financial statements for 2019 indicate the following account balances: Net sales ........................................................ $256,340 Cost of
Question:
Rumsford Inc.'s financial statements for 2019 indicate the following account balances:
Net sales ........................................................ $256,340
Cost of goods sold ............................................. 162,000
Average accounts receivable ................................... 18,710
Average inventory ................................................ 3,845
Average property, plant, and equipment ...................... 72,345
Average total assets ............................................. 119,124
Required:
1. Using this information, calculate Rumsford's receivable turnover ratio. (Round to two decimal places)
2. Using this information, calculate Rumsford's asset turnover ratio and also convert the ratio into days?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... 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.
Step by Step Answer:
1 Receivable Turnover Ratio Net SalesAverage Ac...View the full answer
