# Selected financial statement numbers for Rutherford Company follow. Required: 1. Using this information, calculate Rutherfords receivable turnover ratio (rounded to two decimal places.) 2. Using this information, calculate Rutherfords asset turnover ratio (rounded to two decimal places) and also convert

Selected financial statement numbers for Rutherford Company follow.

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.

Required:

1. Using this information, calculate Rutherford€™s receivable turnover ratio (rounded to two decimal places.)

2. Using this information, calculate Rutherford€™s asset turnover ratio (rounded to two decimal places) and also convert the ratio into days (rounded to the nearest whole day).

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.

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**Related Book For**

## Cornerstones of Financial and Managerial Accounting

**ISBN:** 978-1111879044

2nd edition

**Authors:** Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

**Question Details**

Chapter #

**12**Section: Cornerstone Exercise

Problem: 7