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

Homework Answers

Answer #1
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

You can reach me over comment box if you have any doubts. Please rate this answer

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions