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Sagot :
Answer:
1. 7.38 times
2.49.46 days
3.5.81 times
4.62.82 days
5.112.78 Days
6. 1.64 times
Explanation:
1. Calculation to determine Accounts receivable turnover
First step is to calculate Account Receivable
Account Receivable = (beginning Account Receivables + ending Account Receivables)/2
Account Receivable = ( $9100+12300)/2
Account Receivable = $ 10700
Now let calculate the Account Receivables Turnover Ratio
Account Receivables Turnover Ratio = Sales / average Account Receivables
Account Receivables Turnover Ratio= $79000/10700
Account Receivables Turnover Ratio=7.38 times
2) Calculation to determine Average collection period
Average Collection Period = 365/ Account Receivables turnover ratio
Average Collection Period= 365 days /7.38
Average Collection Period=49.46 days
3) Calculation to determine Inventory turnover
First step is to calculate the Average Inventory
Average Inventory = (beginning inventory + ending inventory)/2
Average Inventory= ( $9700+8200)/2
Average Inventory= $ 8950
Now let calculate the Inventory Turnover Ratio
Inventory Turnover Ratio = Cost of goods sold / average inventory
Inventory Turnover Ratio= $52000/8950
Inventory Turnover Ratio= 5.81 times
4). Calculation to determine Average sale period.
Average Sales period = 365/ inventory turnover ratio
Average Sales period= 365 days /5.81
Average Sales period= 62.82 days
5). Calculation to determine the Operating cycle
Operating Cycle = Average Sales Period + Average Collection Period
Operating Cycle =49.96+62.82
Operating Cycle = 112.78 Days
6) Calculation to determine Total asset turnover
Fire step is to calculate the Average Assets
Average Assets = (beginning Assets + ending Assets)/2
Average Assets= ( $45960+50280)/2
Average Assets= $ 48120
Now let calculate the Assets Turnover Ratio
Assets Turnover Ratio = Sales / average Assets
Assets Turnover Ratio= $79000/48120
Assets Turnover Ratio= 1.64 times
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