| A | B |
|---|
| How to calculate merchandise turnover ratio | Divide cost of merchandise sold by average inventory |
| How to calculate A/R turnover ratio | Divide net sales on account by average value of A/R |
| A low merchandise turnover ratio indicates this | A low return on investment |
| A high turnover ratio usually indicates this: | More profitable business |
| A/R turnover ratio is 12, what are terms? | n/30 |
| Ratio for A/R average = 50,000 net credit sales=120,000 | 2.4 |
| Ratio for inventory avg 50,000 cost of merch sold=100,000 | 4.0 |
| Turnover ratio of 3.6=how many days of inv in stock? | 3.6 |
| An indication of how quickly a business collects A/R | A/R turnover ratio |
| A/R turnover ratio | Number of times per year a business collects avg of A/R |
| My favorite teacher | Mr. Douglas |
