t and of C From the given a Asset turnover for 2016 b Invent

t and of C From the given a. Asset turnover for 2016 b. Inventory tunover for 2016 C. Accounts receivable tunover for 2016 EEB Cick the icon to view the income statement) Click the icon to view the additional information) k the icon to view the additional information ) a. Asset turnover for 2016 Select the formula labels and then enter the amounts to calculate the asset turnovd! Round your calculations to Asset turnover

Solution

a. Asset turnover for 2016 = Net Sales for 2016/Average total assets for 2016 = $     8,20,000 / ((280000+165000)/2) =               3.69 b. Inventory turnover for 2016 = Cost of goods sold for 2016/Average inventory for 2016 = $     7,12,000 / ((93000+64000)/2) =               9.07 c. Accounts Receivable turnover for 2016 = Net credit Sales for 2016/Average Accounts Receivable for 2016 = $     8,20,000 / ((64000+25000)/2) =             18.43