Jim Kovacs Company makes supplies for schools. Sales in 20XX were $4,460,000. The cost of goods...

  

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Jim Kovacs Company makes supplies for schools. Sales in 20XX were $4,460,000. The cost of goods sold were $2,490,000. Assets were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets $138,000 854,000 498,000 500,000 $1,990,000 The industry averages for the following ratios are provided below: Accounts Receivable Turnover Capital Asset Turnover Asset Turnover 4.93 10.32 3.17 What is the accounts receivable turnover? (Round answer to 2 decimal places.) What is the inventory turnover? (Round answer to 2 decimal places.) What is the capital asset turnover?(Round answer to 2 decimal places.) What is the asset turnover?(Round answer to 2 decimal places.) Is the company's capital asset turnover ratio better or worse than the industry average ratio? Is the company's asset turnover ratio better or worse than the industry average ratio? If the company tightened up its credit collection standards by making customers pay quicker, would this help improve the collection period? Choose... Choose... Choose... Choose... Choose... # Choose... Choose... Jim Kovacs Company makes supplies for schools. Sales in 20XX were $4,460,000. The cost of goods sold were $2,490,000. Assets were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets $138,000 854,000 498,000 500,000 $1,990,000 The industry averages for the following ratios are provided below: Accounts Receivable Turnover Capital Asset Turnover Asset Turnover 4.93 10.32 3.17 What is the accounts receivable turnover? (Round answer to 2 decimal places.) What is the inventory turnover? (Round answer to 2 decimal places.) What is the capital asset turnover?(Round answer to 2 decimal places.) What is the asset turnover?(Round answer to 2 decimal places.) Is the company's capital asset turnover ratio better or worse than the industry average ratio? Is the company's asset turnover ratio better or worse than the industry average ratio? If the company tightened up its credit collection standards by making customers pay quicker, would this help improve the collection period? Choose... Choose... Choose... Choose... Choose... # Choose... Choose...

Answer rating: 100% (QA)

Accounts receivable turnover can be calculated as Sales Accounts receivable Substituting the values ... View the full answer