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Ratios for Receivables and Fixed Assets

The following financial statement data are for Moonbeam Inc.
2015 2014 2013'

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $265,000 $220,000 $180,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 65,000 30,000
Property, plant, and equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 155,000 160,000
For 2014 and 2015, compute:
(a) Accounts receivable turnover
(b) Average collection period
(c) Fixed asset turnover

Use the average of the beginning and ending asset balances in computing the ratios.

Solution Summary

Examples of how to calculate the above

$2.19