ACTIVITY RATIOS

Name: __________________________________ Date: _____________

Mat Ching had the following comparative current assets and income statement:

Dec. 31, 2015 Dec. 31, 2014

Current Assets
Cash 75,000 80,000
Marketable Securities 90,000 60,000
Accounts Receivable 110,000 145,000
Inventory 160,000 140,000
Prepaid Expenses 85,000 70,000
Total Current Assets 520,000 495,000

Mat Ching
Income Statement
For the Year Ended December 31, 2015

Sales 1,250,000
Less: Cost of goods sold 850,000
Gross Profit 400,000
Less: Operating expenses 250,000
Net income before tax 150,000
Less: Tax (30%) 45,000
Net Income 105,000

2015 and 2014’s Total Assets were 750,000 and 725,000, respectively.

Compute the following for 2015.

1. Accounts Receivable Turnover
2. Average Age of Receivable
3. Inventory Turnover
4. Average Age of Inventory
5. Operating Cycle
6. Total Asset Turnover