Question

Jim Kovacs company makes supplies for schools. Sales in 20xx were $4,000,000. Assets were as follows: a. Compute the following: 1. Accounts Receivable Turnover 2. Inventory Turnover 3. Capital Asset Turnover 4. Total Asset Turnover?

Answer 1

To compute the requested financial ratios for Jim Kovacs company, we need additional information about assets such as accounts receivable, inventory, and capital assets.

Step-by-step explanation:

To compute the requested financial ratios, we need additional information about Jim Kovacs company's assets:

1. Accounts Receivable Turnover is calculated by dividing net credit sales by the average accounts receivable. However, since the question only provides sales revenue and not credit sales, we cannot calculate this ratio.
2. Inventory Turnover is calculated by dividing the cost of goods sold by the average inventory. Since the cost of goods sold is not provided, we cannot calculate this ratio either.
3. Capital Asset Turnover is calculated by dividing sales revenue by the average capital assets. Again, we don't have the information on capital assets, so we cannot calculate this ratio.
4. Total Asset Turnover is calculated by dividing sales revenue by the average total assets. However, since we don't have the information about the average total assets, we cannot calculate this ratio.

Without the necessary data, we cannot accurately calculate the requested financial ratios.