Jim Short's Company makes clothing for schools. Sales in 20x1 were $4,460,000. Assets were as...
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Jim Short's Company makes clothing for schools. Sales in 20x1 were $4,460,000. Assets were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets $ 138,000 854,000 498,000 500,000 $1,990,000 a. Compute the following: (Round your answers to 2 decimal places.) 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times b. In 20X2, sales increased to $5,770,000 and the assets for that year were as follows: Cash Accounts receivable Inventory Net plant and equipment Total assets $ 138,000 914,000 1,071,000 500,000 $2,623,000 Compute the following: (Round your answers to 2 decimal places.) 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times c. Is there an improvement or a decline in the total asset turnover? Decline O Improvement
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