Problem: Use the given information to answer the three questions that follow:
ABC FITNESS COMPANY
|
INCOME STATEMENT
|
December-99
|
|
Sales
|
1968.016
|
|
Cost of Goods Sold
|
1466.733
|
|
Gross Profit
|
501.283
|
|
Selling and Ad. Expenses
|
361.402
|
|
Depreciation
|
35.7
|
|
Operating Income (EBIT)
|
104.181
|
|
Interest Expense
|
34.482
|
|
Other Expense
|
14.124
|
|
EBT
|
83.823
|
|
Taxes
|
24.701
|
|
Net Income
|
59.122
|
|
|
|
|
BALANCE SHEET
|
000's
|
|
Assets
|
|
|
Cash
|
84.469
|
|
Net Receivables
|
55.514
|
|
Inventories
|
322.433
|
|
Prepaids
|
8.775
|
|
Total Current Assets
|
476.191
|
|
Gross Plant & Equipment
|
955.661
|
|
Accumulated Depreciation
|
338.513
|
|
Net Plant and Equipment
|
617.148
|
|
Other Assets
|
24.621
|
|
Total Assets
|
1117.96
|
|
Liabilities
|
|
|
Notes Payable
|
1.127
|
|
Accounts Payable
|
144.638
|
|
Taxes Payable
|
16.797
|
|
Accrued Expense
|
98.233
|
|
Total Current Liabilities
|
260.795
|
|
Long-Term Debt
|
415.138
|
|
Deferred Taxes
|
20.396
|
|
Total Liabilities
|
696.329
|
|
Equity
|
|
|
Common Stock
|
0.32
|
|
Capital Surplus
|
242.843
|
|
Retained Earnings
|
178.468
|
|
Total Equity
|
421.631
|
|
Total Liabilities and Equity
|
1117.96
|
Calculate the following asset activity ratios for the end of 1999.
1. Average Collection Period
2. Inventory Turnover
3. Total Asset Turnover.