Purchase Solution

Average Collection Period and Turnover Ratios

Not what you're looking for?

Ask Custom Question

ABC Fitness 000's
Income Statement Dec-05
Sales 2004.016
Cost of Goods Sold 1446.733
Gross Profit 557.283
Selling and Ad
Expenses 361.402
Deprciation 56.87
Operating Income
(EBIT) 139.011
Interest expense 34.482
Other Expense 14.124
EBT 90.405
Taxes 2 4.701
Net Income 65.704
Balance Sheet
Assets
Cash 25.32
Net Receivables 55.514
Inventories 141.35
Prepaids 8.775
Total Current
Assests 230.959
Gross Plant &
Equipment 213.34
Accumulated
Depreciation 161.7
Net Plant &
Equipment 507.34
Other Assets 4.621
Total Assests 1117.96
Liabilities
Notes Payable 1.127
Accounts Payable 144.638
Taxes Payable 16.797
Accrued Expense 98.233
Total Current Liabilities 260.795
Long-Term Debt 415.138
Defferred Taxes 20.396
Total Liabilities 696.329
Equity
Common Stock 0.32
Capital Surplus 242.843
Retained Earnings 178.468
Total Equity 421.631
Total Liabilities and
Equity 1117.96

Use the annual information found here to answer this assignment. Calculate the following asset activity ratios for the end of 2005:
Average Collection Period
Inventory Turnover
Total Asset Turnover
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values.

Purchase this Solution

Solution Summary

This explains the computation of Average Collection Period; Inventory Turnover; Total Asset Turnover

Solution Preview

ABC Fitness 000's
Income Statement Dec-05
Sales 2004.016
Cost of Goods Sold 1446.733
Gross Profit 557.283
Selling and Ad
Expenses 361.402
Deprciation 56.87
Operating Income
(EBIT) 139.011
Interest expense 34.482
Other Expense 14.124
EBT 90.405
Taxes 2 ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.