Selected recent balance sheet and income statement information for Frischmuth Systems, Inc. follows:
$$\begin{array} { l r r }
\text { (in millions) } & 2019 & 2018 \
\hline \text { Average inventory } & \mathbf { \$ 2 9 4 } & \mathbf { \$ 3 1 0 } \
\text { Average accounts receivable } & \mathbf { 3 , 0 7 2 } & \mathbf { 3 , 8 9 4 } \
\text { Average accounts payable } & \mathbf { 8 3 7 } & \mathbf { 9 , 5 7 0 } \
\text { Sales } & 17,105 & \mathbf { 2 0 , 9 9 7 } \
\text { Cost of goods sold } & \mathbf { 0 , 7 2 9 } & 11,445 \
\hline
\end{array}$$ a. Calculate accounts receivable turnover for both years. Has accounts receivable turnover improved during the year or worsened?
b. Calculate inventory turnover for 2019 and 2018. Has inventory turnover improved during the year or worsened?

Question

Selected recent balance sheet and income statement information for Frischmuth Systems, Inc. follows:
 $$\begin{array} { l r r } 
\text { (in millions) } & 2019 & 2018 \
\hline \text { Average inventory } & \mathbf { \$ 2 9 4 } & \mathbf { \$ 3 1 0 } \
\text { Average accounts receivable } & \mathbf { 3 , 0 7 2 } & \mathbf { 3 , 8 9 4 } \
\text { Average accounts payable } & \mathbf { 8 3 7 } & \mathbf { 9 , 5 7 0 } \
\text { Sales } & 17,105 & \mathbf { 2 0 , 9 9 7 } \
\text { Cost of goods sold } & \mathbf { 0 , 7 2 9 } & 11,445 \
\hline
\end{array}$$ a. Calculate accounts receivable turnover for both years. Has accounts receivable turnover improved during the year or worsened?
b. Calculate inventory turnover for 2019 and 2018. Has inventory turnover improved during the year or worsened?

Quizplus · Accepted Answer

The Answer of Selected recent balance sheet and income statement information for Frischmuth Systems, Inc. follows:
 $$\begin{array} { l r r } 
\text { (in millions) } & 2019 & 2018 \
\hline \text { Average inventory } & \mathbf { \$ 2 9 4 } & \mathbf { \$ 3 1 0 } \
\text { Average accounts receivable } & \mathbf { 3 , 0 7 2 } & \mathbf { 3 , 8 9 4 } \
\text { Average accounts payable } & \mathbf { 8 3 7 } & \mathbf { 9 , 5 7 0 } \
\text { Sales } & 17,105 & \mathbf { 2 0 , 9 9 7 } \
\text { Cost of goods sold } & \mathbf { 0 , 7 2 9 } & 11,445 \
\hline
\end{array}$$ a. Calculate accounts receivable turnover for both years. Has accounts receivable turnover improved during the year or worsened?
b. Calculate inventory turnover for 2019 and 2018. Has inventory turnover improved during the year or worsened?

Selected Recent Balance Sheet and Income Statement Information for Frischmuth