The Following Data Is Available for Toys 4 U for the Years

question 43

Essay

The following data is available for Toys 4 U for the years 2009 through 2012:
1. Calculate the trade payables turnover ratio for the following years:
2. Calculate the number of days it is taking Toys 4 U to pay their vendors:
3. Explain whether Toys 4 U is doing a better job at paying their vendors in a timely manner.

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Definitions:

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered or altered by current or future actions.

Decision Making

Selecting a course of action from competing alternatives.

Avoidable Cost

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.