Select a Manufacturing Industry of Your Choice

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The Answer is Activity ratios analyze how well a company is managing and making use of its assets.In this exercise,the students should calculate inventory turnover ratio and accounts receivable turnover ratio.
Inventory turnover ratio is a measure of the time a company takes to turn its inventory into sales,calculated by dividing cost of goods sold by the average value of inventory for a period.Accounts receivable turnover ratio is a measure of the time a company takes to turn its accounts receivable into cash,calculated by dividing sales by the average value of accounts receivable for a period.
Student answers will vary due to the nature of this exercise.

Select a Manufacturing Industry of Your Choice

Essay

Correct Answer:
Verified

Select a Manufacturing Industry of Your Choice

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified