Presented Below Are Selected Data from the Financial Statements of Hospital

question 86

Essay

Presented below are selected data from the financial statements of Hospital Supply Company for 2016, 2015, and 2014.
A Calculate Hospital Supply's number of days' sales in receivables for 2016 and 2015.
Assume 360 days in a year.
B What is the meaning of your answer in part A?

---

Definitions:

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt Ratio

The debt ratio measures a company's financial leverage, calculated by dividing total liabilities by its total assets.