Question

Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Gross income - $ 60,746,000 Total sales - 58,538,000 Total credit sales - 31,978,000 Net income - 7,158,000 Cost of goods sold - 30,324,000 Total assets - 15,067,000 Average inventory - 8,211,000 Average receivables - 4,922,000Receivable turnover = _______.Inventory turnover = _______.Asset turnover = ________.

Answer 1

Receivable Turnover= 11.89

Inventory Turnover = 3.69

Asset Turnover= 3.885

Step-by-step explanation:

Receivable Turnover = Net Sales/ Average Account Receivable

Receivable Turnover = 58,538,000/ ( beginning AR + Ending AR)/2

Receivable Turnover = 58,538,000/ 4922,000

Receivable Turnover= 11.89

Inventory Turnover = Cost of Good Sold/ Average Inventories

Inventory Turnover = Cost of Good Sold/ ( beginning Inv + Ending Inv )/2

Inventory Turnover = 30,324,000/8211000

Inventory Turnover = 3.69

Asset turnover= Net Sales/ Average Total Assets

Asset turnover= 58,538,000/ 15,067,000

Asset Turnover= 3.885