Question: Need Help with fill in questions also is the third fill in correct wtill not sure? The DSO can also be evaluated by comparison with
Need Help with fill in questions also is the third fill in correct wtill not sure?
The DSO can also be evaluated by comparison with the terms on which the firm -Select- its goods. If its trend has been rising and-Slect- policy has not changed, this would indicate a need to speed up the collection of receivables. The fixed assets turnover ratio measures how effectively the firm uses its plant and equipment. Its equation is: Sales Net fixed assets Fixed assets turnover ratio There can be problems interpreting this ratio due to inlationparticularly when an older firm is compared with a newer company. The total assets turnover ratio measures how effectively the firm uses its total assets and whether the firm generates enough sales given its total assets. Its equation is
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
