Activity Ratios:

1. Total asset turnover for Magnetronics in 1999 can be calculated by dividing

$48,769 into $22,780. The turnover deteriorated from 2.175 times in 1995 to
2.141 times in 1999.
32,153
1995: 14,949
= 2. 175

48,769
1999: 22,780
= 2. 141

2. Magnetronics had $7,380 invested in accounts receivables at year-end 1999. Its

average sales per day were $133.61 during 1999 and its average collection period
was 55.23 days. This represented an improvement from the average collection
period of 58.68 days in 1995.

5,227
1995: 32,513 = 58. 68
365

7,380
1999: 48,769 = 55. 23
365

3. Magnetronics apparently needed $8,220 of inventory at year-end 1999 to support

its operations during 1999. Its activity during 1999 as measured by the cost of
goods sold was $29,700. It therefore had an inventory turnover of 3.61 times. This
represented a deterioration from 4.76 times in 1995.

19,183
1995: 4,032
= 4. 76

29,700
1999: 8,220
= 3. 61