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bala
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| Posted: 20 Sep 2010 at 15:57 | IP Logged
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The following financial ratios and calculations were based on information from Kohl Co.'s financial statements for the current year:
Accounts receivable turnover
Ten times during the year
Total assets turnover
Two times during the year
Average receivables during the year
$200,000
What was Kohl's average total assets for the year?
ans is $1,000,000
can someone help me out here?
Thanks!
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jsn123
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| Posted: 20 Sep 2010 at 17:44 | IP Logged
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Acct Rec turnover = sales/Average acct rec = 10
sales/$200,000 = 10
sales = $2,000,000
Assets turnover = sales/ Average total assets = 2
Asset Turnover = $2,000,000/total assets = 2
Total assets = $1,000,000
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Persia
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| Posted: 20 Sep 2010 at 19:22 | IP Logged
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| A/R T = |
sales |
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10 = |
calculate |
=200000*10 |
| Avg Rec |
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| TAT= |
Sales |
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2 = |
2000000 |
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solution |
=2000000/2 |
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bala
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| Posted: 21 Sep 2010 at 12:25 | IP Logged
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Thank u guys for a wonderful explanation. appreciate it.
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Topic: avg total asset
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