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Ratio calculation

Please find answers top C and D.

Huffman Trucking
Statement of Income
(Unaudited)

December 31st
2006 2005
(In Thousands)

Revenue $879,944 $807,288

Operating Expenses
Salaries, Wages & Benefits $353,739 $330,597
Fuel Expense 217,363 192,357
Operating Supplies and Expenses 152,318 136,319
Purchased Transportation 89,957 82,529
Operating Taxes & Licenses 18,613 17,989
Insurance & Claims 13,526 13,006
Provision for Depreciation 2,726 2,738
Total Operating Expenses $848,242 $775,535

Operating Income form Continuing Operations $31,702 $31,753

Interest Expense $790 $901
Tax Expense 11,701 12,050
Net Income $19,211 $18,802

c)    Receivables turnover

d)    Inventory turnover

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c. Receivables Turnover = Sales/Average receivables
2006
Average Receivables = (56,292+57,441)/2 = ...

Solution Summary

The solution explains the calculation of receivables turnover and inventory turnover

$2.19