Question

# Cintas Corporation is the largest uniform supplier in North America. Selected information from its annual report...

Cintas Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2013 fiscal year, the company reported sales revenue of \$5.5 billion and Cost of Goods Sold of \$3.7 billion.

 Fiscal Year 2013 2012 Balance Sheet (amounts in millions) Cash \$ 480 \$ 400 Accounts Receivable, net 740 690 Inventories 300 310 Prepaid Rent 705 600 Accounts Payable 180 160 Salaries and Wages Payable 460 460 Income Tax Payable 104 22 Notes Payable (short-term) 22 290

Assuming that all sales are on credit, compute the following ratios for 2013. (Round your answers to 2 decimal places.) (Current ratio, inventory turnover ratio, accounts receviable turnover ratio

 Current Ratio = Current assets / Current Liabilities Current Ratio = (\$480+\$740+\$300+\$705) / (\$180+\$460+\$104+\$22) Current Ratio = 2.90
 Inventory turn over ratio = Cost of goods sold / Average inventory Inventory turn over ratio = \$3,700 / ((\$300+\$310)/2) Inventory turn over ratio = 12.13
 Accounts Receivable Turnover ratio = Net credit sales / Average accounts Receivable Accounts Receivable Turnover ratio = \$5,500 / ((\$740+\$690)/2) Accounts Receivable Turnover ratio = 7.69

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