Calculate and explain inventory turnover, accounts receivable turnover
Not what you're looking for?
- How is inventory turnover calculated?
- Explain how inventory turnover affects the amount of cash that must be invested in inventory.
- How is accounts receivable turnover calculated?
- Explain how accounts receivable turnover affects the amount of cash that must be invested in accounts receivable.
- Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in inventory require?
- Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in accounts receivable require?
Purchase this Solution
Solution Summary
Your tutorial is in Excel (attached). Click in cells to see computations. One day's investment in inventory and AR are computed for you and discussion walks you through it.
Solution Preview
Inventory turnover:
cost of goods sold
average inventory
Accounts receivable ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.