ASSET EFFICIENCY RATIOS
Selected financial statement numbers for Frederick Company are given below.
|
Net sales
|
$277,480
|
|
Cost of goods sold
|
179,000
|
|
Average accounts receivable
|
20,730
|
|
Average inventory
|
4,145
|
|
Average property, plant, and equipment
|
75,705
|
|
Average total assets
|
126,127
|
Required:
1. Using this information, calculate Frederick's receivable turnover ratio (round to two decimal places).
2. Using this information, calculate Frederick's asset turnover ratio and also convert the ratio into days.