FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 8, Problem 30E
a.
To determine
Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017.
b.
To determine
Indicate the changes that are evident in the turnover rates of 3M for these years, Discuss the ways in which the company can improve its turnover within each of these three areas.
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a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas
1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution.
d. Accounts Receivable Turnover Ratio
e. Average Collection Period
f. Inventory Turnover Ratio
g. Average Days in Inventory
h. Number of days in Operating Cycle
i. Debt to Total Assets Ratio
j. Debt to Equity Ratio
k. Times Interest Earned Ratio
l. Gross Profit Ratio
m. Profit Margin Ratio
n. Return on Assets
o. Return on Equity
p. Assets Turnover Ratio
What changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas (receivable, inventory, and PPE turnover)?
Chapter 8 Solutions
FINANCIAL ACCOUNTING
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