Answer:
Accounts Receivable Days = 18.25 days
Fixed Asset Turnover = 1/3 times
Total Asset Turnover = 1/5 times
Inventory Turnover = 4 times
Explanation:
Accounts Receivable Days
Accounts Receivable Days = (Accounts Receivable / Sales) x Number of
Days In a Year
Accounts Receivable = $50,000
Sales = $1 million = $1,000,000
Number of days in a year = 365 days
Accounts Receivable Days = ($50,000/$1,000,000) x 365 days
Accounts Receivable Days = (0.05) x 365 days
Accounts Receivable Days = 18.25 days
Fixed Asset Turnover
Fixed Asset Turnover = Sales/Fixed Assets
Sales = $1,000,000
Fixed Assets = $3 million = $3,000,000
Fixed Asset Turnover = $1,000,000/ $3,000,000
Fixed Asset Turnover = 1/3 times
Total Asset Turnover
Total Asset Turnover = Sales/Total Assets
Sales = $1,000,000
Total Assets = $5 million = $5,000,000
Total Asset Turnover = $1,000,000/ $5,000,000
Total Asset Turnover = 1/5 times
Inventory Turnover
Inventory Turnover = Cost of Goods Sold/Total Inventory
Cost of Goods Sold = $600,000
Total Inventory = $150,000
Inventory Turnover = $600,000/$150,000
Inventory Turnover = 4 times
