The Partial Balance Sheets and Income Statements for Weasley's, Inc

Question

Examlex · Accepted Answer

The Answer is a. 2019 accounts receivable turnover = Sales / Average accounts receivable
= $276,602 / [($26,262 + $30,425) / 2] = 9.76
2018 accounts receivable turnover = $286,118 / [(30,425 + $29,831) / 2] = 9.50
Accounts receivable turnover has improved during the year, but not significantly. The company collected its receivables almost 9.50 times during 2019.

b. 2019 inventory turnover = Cost of goods sold / Average inventory
= $136,143 / [($30,960 + $37,872) / 2] = 3.96
2018 inventory turnover = $138,376 / [($37,872 + $30,686) / 2] = 4.04
Inventory turnover has deteriorated slightly during the year.

c. 2019 asset turnover = Sales / Average assets
= $276,602 / [($240,399 + $261,521) / 2] = 1.102
2018 asset turnover = $286,118 / [($261,151 + $434,214) / 2] = 0.823

The Partial Balance Sheets and Income Statements for Weasley's, Inc

Essay

Correct Answer:
Verified

The Partial Balance Sheets and Income Statements for Weasley's, Inc

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified