Question: STU Inc. wants to assess its efficiency using efficiency ratios. The financial data for the year is as follows: Cost of Goods Sold: $300,000 Average

  • STU Inc. wants to assess its efficiency using efficiency ratios. The financial data for the year is as follows:

    • Cost of Goods Sold: $300,000
    • Average Inventory: $50,000
    • Accounts Receivable: $40,000
    • Sales Revenue: $500,000

  • Calculate the following efficiency ratios:

    • Inventory Turnover Ratio
    • Accounts Receivable Turnover Ratio

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