Jim Short’s Company makes clothing for schools. Sales in 2013 were $4,820,000. Assets were as follows: cash163000accounts receivable889000inventory411000net plant and equipment520000total…

Jim Short’s Company makes clothing for schools. Sales in 2013 were $4,820,000. Assets were as follows:

cash163000accounts receivable889000inventory411000net plant and equipment520000total assets1983000

a. compute the following

1. accounts receivable turnover

2. inventory turnover

3. fixed asset turnover

4. total asset turnover

b. in 2014, sales increased to $5,740,000 and the assets for that year were as follows:

cash163000accounts receivable924000inventory1063000net plant and equipment520000total assets2670000

Compute the four ratios again.

c. indicate if there is an improvement or decline in total asset turnover, and based on the other ratios, indicate why this development has taken place

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