Suppose the total sales are $62,088,000, the gross income is $64,426,000, the net income is $10,594,000, the COGS is $32,164,000, the total credit sales are $43,554,000, the average receivables are $3,804,000, the total assets are $11,648,000, and the average inventory is $3,849,000. Don't overthink the values just given (they are randomly generated, so some may seem abnormally high or low compared to each other based on normal relationships). Answer the following questions

a. Compute the asset turnover ratio.

b. Compute the receivable turnover ratio.

c. Compute the inventory turnover ratio.

d. Compute the days of supply.

e. Compute the profit margin. Write the final answer as a percent and round it to 3 decimal places

Answer rating: 100% (QA)

Calculating Ratios a Ratio of Asset Turnover This ratio assesses how well a business generates sales ... View the full answer