Given the following information: Cash €40600; Accounts Receivable €159600; Inventory €158200: Prepaid Expenses €8400: Total fixed assets €735000; Total current liabilities €198800: Long-term debt €404600; Total shareholders equity €498400: Net sales €1029600; Cost of goods sold €615600; Gross Margin €414000; Net income €57600. Calculate: a) The inventory turnover; b) The debt ratio c) The return on equity.
Added by Маруся Л.
Step 1
The formula to calculate inventory turnover is: \[ \text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}} \] Given: - Cost of Goods Sold (COGS) = €615,600 - Inventory = €158,200 Since we are not given the beginning Show more…
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