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6 Cards in this Set
- Front
- Back
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Activity Ratios:
receivables turnover |
annual sales/average receivables
- average receivables = (Begin yr. + End yr. (receivables))/2 - Industry Norm |
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Days of sales outstanding
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365/receivables turnover
- Number of days it takes for the company's customers to pay their bills. - Industry Norm |
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inventory turnover
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COGS/avg. Inventory on hand
- Industry Norm |
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days of inventory on hand
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365/inventory turnover
- Days of inventory on hand - Industry Norm |
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payables turnover
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purchases/average trade payables
- Industry Norm |
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number of days of payables
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365/payables turnover ratio
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