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

question 102

Essay

The following data is available for Toys 4 U for the years 2004 through 20X7: Toys 4 U Financial Data $$\begin{array} { | l | r | r | r | r | } \hline & 20X 7 & 20X6 & 20X 5 & 20X 4 \\\hline \text { Cost of sales } & \$ 8,191 & \$ 7,710 & \$ 6,892 & \$ 6,592 \\\hline \text { Accounts payable } & 1,415 & 1,280 & 1,346 & 1,182 \\\hline\end{array}$$ 1. Calculate the trade payables turnover ratio for the following years: $$\begin{array} { | l | } \hline \text { a. } 20X7 \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\\\hline \text { b. } 20X6 \\\hline \text { c. } 20X 5 \\\hline\end{array}$$
2. Calculate the number of days it is taking Toys 4 U to pay their vendors: $$\begin{array} { | l | } \hline \text { a. } 20X 7\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \\\hline \text { b. } 20X 6 \\\hline \text { c. } 20X 5 \\\hline\end{array}$$
3. Explain whether Toys 4 U is doing a better job at paying their vendors in a timely manner.

---

Definitions:

Baby Boomers

Generational cohort of people born after World War II, between 1946 and 1964.

Self-fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Psychographic Segmentation

A market segmentation technique that divides consumers based on their lifestyle, interests, values, and personality traits.

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, or ethnic background to tailor marketing strategies.