Below Is Financial Information for Two Restaurant Retailers Required:
A

question 28

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)
$\begin{array}{l}\begin{array}{lll}\\\text {Net Sales}\\\text {Sales}&\text { Simmer } \$ 5,000 \text { Popper's }\\\text {300}\\\text {Cost of Goods Sold}\\\text {Interest Expense}\\\text {Net Income}\\\text {Average Inventory}\\\text {Average Fixed Assets}\\\end{array}\begin{array}{lll}\text { Simmer }\\\$4,076\\\\ \\1,686 \\0 \\268 \\303 \\2,163\end{array}\begin{array}{lll}\text { Роррег's}\\\$278\\\\ \\97\\0\\22\\4\\130\\\end{array}\end{array}$
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:

Net Credit Sales

The total value of sales made on credit minus returns and allowances, representing actual sales revenue earned and expected to be collected.

Honoring a Note

The act of paying off a note payable or bond at its maturity, fulfilling the issuer's obligation.

Note Receivable

A note receivable is a financial asset representing a written promise to receive a specific amount of money, with interest, from another party by a certain date.

Percent of Sales Method

A financial analysis tool used to forecast future expenses or accounts such as bad debts, based on a percentage of sales.