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Ratio Analysis

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Use the annual information found that can be found by clicking here to answer this assignment. Calculate the following asset activity ratios for the end of 2005:

Average Collection Period
Inventory Turnover
Total Asset Turnover

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Solution Summary

Solution explains the computation of ratios such as inventory turnover, asset turnover and collection period supported by the practical examples.

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Average Collection Period = 365/ Debtor Turnover Ratio
Debtor Turnover Ratio= ...

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