Selected financial data for Shumway Ltd. are shown below. Instructions a. Calculate for each of 2021 and
Question:
Selected financial data for Shumway Ltd. are shown below.
Instructions
a. Calculate for each of 2021 and 2020 the following ratios:
1. Receivables turnover 4. Days sales in inventory
2. Collection period 5. Operating cycle
3. Inventory turnover
b. Based on the ratios calculated in part (a), what conclusion(s) can be drawn about the management of the receivables and inventory?
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Step by Step Answer:
a 1 and 2 5 Operating cycle Days sales in inventory Collection period 2021 127 days 81 days 46 days ...View the full answer
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