Activity Ratios Flashcards
1
Q
Accounts Receivable Turnover
A
Net Credit Sales/Average Accounts Receivable
2
Q
Average Collection Period
A
365/Average Receivable Turnover
3
Q
Inventory Turnover
A
Cost of Goods Sold/Average Inventory
4
Q
Average Age of Inventory
A
365/Inventory Turnover
5
Q
Total Asset Turnover
A
Net Sales/Average Total Assets
