21-13

Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns E and G. Accounts Receivable Turnover Sales Net receivables: Beginning of year End of year Average receivables [(beginning balance + ending balance) 2] Accounts receivable turnover Average Collection Period Average receivables (from above) Sales Average daily sales (sales 365) Average collection period Fixed Asset Turnover Sales Property, plant and equipment Beginning of year End of year Average fixed assets [(beginning balance + ending balance) 2] Fixed asset turnover 2002 $ 140,000 2001 $ 105,000

$ 25,000 $ 30,000 $ 27,500 5.09 times 2002 $ 27,500 $ 140,000 $ 384 71.6 days 2002 $ 140,000

$ 10,000 $ 25,000 $ 17,500 6.00 times 2001 $ 17,500 $ 105,000 $ 288 60.8 days 2001 $ 105,000

$ 80,000 $ 105,000 $ 92,500 1.51 times

$ 89,000 $ 80,000 $ 84,500 1.24 times