FAR 2 - Financial Reporting and Disclosures

Question 1

Inventory Turnover Formula

Answer 1

= Cost of Goods Sold/Average Inventory

Question 2

Cost of Goods Formula

Answer 2

=Beginning Inventory + Purchases - Ending Inventory

Question 3

Working Capital Turnover

Answer 3

=Net Sales/Avg Working Capital

Question 4

Working Capital

Answer 4

=current assets - current liabilities

Question 5

Return on Assets

Answer 5

=Net Income/Average Total Assets

Question 6

Accounts Receivable Turnover

Answer 6

=Sales/Avg Accounts Receivable