Efficiency/ Activity Ratios Flashcards
1
Q
Inventory Turnover Ratio
A
Cost of Goods Sold / Avg Inventory
2
Q
Receivables Collection Period
A
Avg Acc Rec/ Credit Sales x 365
3
Q
Accounts Receivable Turnover
A
Credit Sales / Avg Acc Receivables
4
Q
Payables Payment Period
A
Avg Acc Payable / Cost of goods sold x 365
