Below Is Financial Information for Two Restaurant Retailers

question 89

Essay

Below is financial information for two restaurant retailers.Popper's Company operates an innovative retail bakery-cafe business and franchising business.At the end 2010,Popper's had 132 company-owned and 346 franchise-operated bakery-cafes.Popper's located most of their unique bakery-cafe concept stores in suburban,strip mall,and regional mall locations.As a first mover in this concept,the company operates in 32 states.Simmer Corporation began operations five years earlier than Popper's and purchases and roasts whole bean coffees and sells them,along with numerous coffee drinks and related products at over 2,900 Company-operated retail stores.
Selected Data for Popper's Company and Simmer Corporation
(amounts in millions)

Required:
a.Compute the Inventory turnover,fixed asset turnover,and accounts receivable turnover.
b.Describe the likely reasons for the difference in the accounts receivable turnover and the inventory turnover

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Definitions:

External Factors

Conditions and forces outside the organization that affect its performance, including economic, social, political, and technological influences.

Attribution Error

A cognitive bias in which an individual incorrectly attributes the behaviors of others to inherent personality traits rather than external situations.

Consensus

A general agreement or collective unanimity among a group of people, especially in decision-making processes.

Distinctiveness

The quality of being easily distinguishable or unique compared to others.