Presented below are select financial data from the TurboWind annual report: In millions) Balance sheet Accounts...

 

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Presented below are select financial data from the TurboWind annual report: In millions) Balance sheet Accounts receivable (net) nventory income statement Net sales Cost of goods sold Required: A. Calculate the following ratios for both years 1. Receivable turnover 2. Receivable collection period 3. Inventory turnover 4. Inventory-on-hand period Year 1 $7,617 5.389 $51.423 37.655 Equation Net Sales/AR 365/Receivable Turnover Cost of Goods Sold/Inventory 365/Inventory Turnover Year 2 $7.926 5.737 $76,112 57.084 Format as: XX XX.X X.X XX.X *Net Sales = Gross Sales less sales & allowances Year 1 times days times days B. Provide a brief analysis summarizing your response to the following questions: i) Evaluate TurboWind's accounts receivable and inventory management implied by changes in the ratios calculated in Part A. Evaluate how changes in the ratios calculated in Part A would impact TurboWind's cash flows. ii) iii) Evaluate the potential positives and negatives related to changes in the ratios calculated in Part A. Year 2 times days times days Presented below are select financial data from the TurboWind annual report: In millions) Balance sheet Accounts receivable (net) nventory income statement Net sales Cost of goods sold Required: A. Calculate the following ratios for both years 1. Receivable turnover 2. Receivable collection period 3. Inventory turnover 4. Inventory-on-hand period Year 1 $7,617 5.389 $51.423 37.655 Equation Net Sales/AR 365/Receivable Turnover Cost of Goods Sold/Inventory 365/Inventory Turnover Year 2 $7.926 5.737 $76,112 57.084 Format as: XX XX.X X.X XX.X *Net Sales = Gross Sales less sales & allowances Year 1 times days times days B. Provide a brief analysis summarizing your response to the following questions: i) Evaluate TurboWind's accounts receivable and inventory management implied by changes in the ratios calculated in Part A. Evaluate how changes in the ratios calculated in Part A would impact TurboWind's cash flows. ii) iii) Evaluate the potential positives and negatives related to changes in the ratios calculated in Part A. Year 2 times days times days