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Ratio Analysis for Comparative Calendar-Year Financial Data

Comparative calendar-year financial data for a company are shown below:

2008 2007
Sales $720,000 $607,500
Cost of Goods Sold 450,000 382,700
Operating expenses 168,500 134,900
Net Income 51,200 51,700

December 31, 2008 December 31, 2007
Accounts Receivable (net) $157,500 $162,500
Inventory 139,500 110,500
Total assets 1,012,500 944,800

Calculate:
(1) Accounts receivable turnover for 2008.
(2) Days' sales uncollected for 2008.
(3) Inventory turnover for 2008.
(4) Days' sales in inventory for 2008.

Attachments

Solution Summary

The solution contains the computation of following ratios in an attached Excel file: accounts receivable turinver ratios, days' sales uncollected, inventory turnover ratios, and days' sales in inventory.

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