Calculate the following asset activity ratios for the end of 2005
1.Average Collection Period
3.Total Asset Turnover
SHORT ANSWER PLEASE
Identify four financial ratios and state what they tell you about a firm and why it's important to understand what these ratios mean to both a bank and an investor.
Average collection period = Average receivables /Sales * 365 = 55.514/2004.016*365 =10.11 days
The collection period for the company is good.
Inventory turnover = Average ...