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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.
Selected financial statement numbers for Rutherford Company follow. Required: 1. Using

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
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.
Transcribed Image Text:

Net sales Cost of goods sold Avarage accounts recaivable $277,480 Average inventory 179,000 20,730 Average property, plant, and equipment Average total assets $4,145 75,705 126,127

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Related Book For  answer-question
Cornerstones of Financial and Managerial Accounting

Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

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

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Question Details
Chapter # 12
Section: Cornerstone Exercise
Problem: 7
Posted Date: September 22, 2015 03:23:25
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