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

question 47

Essay

The following data is available for Toys 4 U for the years 2009 through 2012:
1.Calculate the trade payables turnover ratio for the following years:
2.Calculate the number of days it is taking Toys 4 U to pay their vendors:
3.Explain whether Toys 4 U is doing a better job at paying their vendors in a timely manner.

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Definitions:

Net Income

The net income of a business once all costs, such as operational expenditures and taxes, have been deducted.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.

Expense

An outflow of money to another person or entity to pay for an item or service or for a category of costs.

Owner's Capital Account

An equity account on a company's balance sheet representing the owner's invested funds plus the net income minus the withdrawals by the owner.