I need to calculate the following asset activity ratios for the end of 1999.
1. Average Collection Period
2. Inventory Turnover
3. Total Asset Turnover.
Please refer to file response attached (which I would recommend), which is also presented below. I hope this helps and take care.
1. Use the following information to answer the three questions that follow:
ABC FITNESS COMPANY
INCOME STATEMENT December-99
Cost of Goods Sold 1466.733
Gross Profit 501.283
Selling and Ad. Expenses 361.402
Operating Income (EBIT) 104.181
Interest Expense 34.482
Other Expense 14.124
Net Income 59.122
BALANCE SHEET 000's
Net Receivables 55.514
Total Current Assets 476.191
Gross Plant & Equipment 955.661
Accumulated Depreciation 338.513
Net Plant and Equipment 617.148
Other Assets 24.621
This solution computes three asset activity ratios.