3- n y u stern schoolof business（3 - n y u斯特恩学院业务）.docVIP

Problems 3.{L) A. Activity Ratios: (i) Inventory turnover = COGS/Average inventory = $8,048 / $1,919 = 4.19X (ii) Accounts receivable turnover = Sales/ Average receivables = $12,065 / $2,545 = 4.74X (iii)Fixed asset turnover = Sales/Average property = $12,065 / $1,304 = 9.26X (iv) Total asset turnover = Sales/Average assets = $12,065 / $6,425 = 1.88X B. Liquidity Ratios: (i) Operating cycle = 365 [1/inventory turnover + 1/receivable turnover] = 365 [1/4.19 + 1/4.74] = 164.1 days (ii) Cash cycle: Purchases = COGS + Increase in accounts payable = $8,048 + $448