Problem: Compute the financial ratios using the 2010 and 2009 data.
Inventories for Robinson Company are $500,000 for 2014 and $350,000 for 2013. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2013 and $1,200,000 in 2014.
a. Calculate the inventory turnover for each year. Comment on your findings.
b. What would have been the amount of inventories in 2014 if the 2013 turnover ratio had been maintained?
- Current ratio
- Quick Ratio
- Average Payment Period
- Total Asset Turnover
- Fixed Asset Turnover
- Average Collection Period
- Inventory Turnover
- Total Debt to Total Assets
- Equity Multiplier
- Interest Coverage
- Operating Profit Margin
- Net Profit Margin
- Operating Return on Assets
- Return on Assets
- Return on Equity