Refer to Rhodes Bakery. Calculate the following asset efficiency ratios for 2015 and 2014: Accounts Receivable Turnover Ratio, Inventory Turnover Ratio, and Asset Turnover Ratio. Also determine the Operating Cycle. Round your answers to two decimal places. Comment on the company's asset efficiency ratios.
A portion of the company's income statements are shown below. At December 31, 2013, Accounts Receivable, Inventories, and Total Assets were $18,500, $6,500, and $325,000, respectively.
Definitions:
Cost of Goods Sold
The total cost directly tied to the production of the goods sold by a company.
Job-Order Costing System
A cost accounting system that assigns manufacturing costs to an individual product or batches of products, often used when products are distinctly different.
Overapplied
A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.
Underapplied
A condition where allocated manufacturing overhead for a period is less than the actual overhead incurred, causing unabsorbed overhead costs.
Q7: Which of the following is an example
Q27: Various financial ratios, including payout ratios, are
Q78: The acid test ratio is a stricter
Q102: When treasury stock is reissued at a
Q119: Net profit margin percentage
Q178: Cash flows from operating activities correspond to
Q186: The purchase of inventory is an important
Q191: Preferred stockholders typically do not have the
Q195: Which of the following transactions is not
Q215: The residual claim entitles a common stockholder