Computing Activity Ratios Selected balance sheet and income statement information follows for R.A. Corporation. R.A. Corporation $ millions April 2, 2020 March 28, 2019 Income statement information: Sales $20,967 $22,353 Cost of goods sold 9,654 9,726 Balance sheet information: Accounts receivable, gross 2,313 2,718 Inventory 3,375 3,126 Accounts payable 468 630 Required Compute the following ratios for its fiscal year ended April 2, 2020. Round your answers to two decimal places (for example, enter 20.46 for 20.4555558). a. Accounts receivable turnover Answer b. Average days to collect receivables Answer c. Inventory turnover Answer d. Average days in inventory Answer e. Accounts payable turnover Answer f. Average days payable outstanding Answer g. Cash conversion cycle Answer
Computing Activity Ratios Selected balance sheet and income statement information follows for R.A. Corporation. R.A. Corporation $ millions April 2, 2020 March 28, 2019 Income statement information: Sales $20,967 $22,353 Cost of goods sold 9,654 9,726 Balance sheet information: Accounts receivable, gross 2,313 2,718 Inventory 3,375 3,126 Accounts payable 468 630 Required Compute the following ratios for its fiscal year ended April 2, 2020. Round your answers to two decimal places (for example, enter 20.46 for 20.4555558). a. Accounts receivable turnover Answer b. Average days to collect receivables Answer c. Inventory turnover Answer d. Average days in inventory Answer e. Accounts payable turnover Answer f. Average days payable outstanding Answer g. Cash conversion cycle Answer
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
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Question
Computing Activity Ratios
Selected balance sheet and income statement information follows for R.A. Corporation.
| R.A. Corporation | ||
|---|---|---|
| $ millions | April 2, 2020 | March 28, 2019 |
| Income statement information: | ||
| Sales | $20,967 | $22,353 |
| Cost of goods sold | 9,654 | 9,726 |
| Balance sheet information: | ||
| Accounts receivable, gross | 2,313 | 2,718 |
| Inventory | 3,375 | 3,126 |
| Accounts payable | 468 | 630 |
Required
Compute the following ratios for its fiscal year ended April 2, 2020.
- Round your answers to two decimal places (for example, enter 20.46 for 20.4555558).
| a. Accounts receivable turnover | Answer
|
| b. Average days to collect receivables | Answer
|
| c. Inventory turnover | Answer
|
| d. Average days in inventory | Answer
|
| e. Accounts payable turnover | Answer
|
| f. Average days payable outstanding | Answer
|
| g. Cash conversion cycle | Answer
|
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