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Turnover Ratios and Ratio Calculation Analysis

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Use the annual information found that can be found by clicking on the attachment to answer this assignment. Calculate the following asset activity ratios for the end of 2005:

1. Average Collection Period
2. Inventory Turnover
3. Total Asset Turnover

Please show all work, including formulae and calculations used to arrive at financial values.

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Solution Summary

Explains how to calculate the turnover ratios with formula.

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Average collection period = Average receivables /Sales * 365 ...

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