Question

Please show work. Calculate the following for the National Beverage Corp. (for the latest year listed) You can use https://www.nasdaq.com/symbol/fizz/financials

a) Asset turnover ratio

b) Inventory turnover ratio

Answer 1

a) asset turnover ratio = net sales/ average assets

in the given hyperlink of national beverage corp

net sales for 4/28/2018 = $975,734

average assets = ($458,832+$353,983)/2 = $406,407

by applying formula = 2.40

b Inventory turnover ratio = cost of goods sold/ average inventory

cost of goods sold = beginning inventory+purchase-closing inventory

= $53,355+$584,599-$60,920

= $577,034

average inventory = (opening inventory+closing inventory) /2

= ($53,355+$60,920)/2

= $57,135

by applying the formula we can get = 10.10