Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues  $ 546,190 Cost of revenues  $ 340,275 Inventories as of 31 January 2022  $44,064 Inventories as of 31 January 2021  $41,020 Accounts payable as at 31 January 2022  $58,600 Accounts payable as at 31 January 2021  $51,800 Accounts receivable as at 31 January 2022  $7,482 Accounts receivable as at 31 January 2021  $5,434   Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year.

Revenues  $ 546,190

Cost of revenues  $ 340,275

Inventories as of 31 January 2022  $44,064

Inventories as of 31 January 2021  $41,020

Accounts payable as at 31 January 2022  $58,600

Accounts payable as at 31 January 2021  $51,800

Accounts receivable as at 31 January 2022  $7,482

Accounts receivable as at 31 January 2021  $5,434

 

Compute the following financial ratios for Judon Corp for 2022

1. Account Receivable Turnover Ratio (Times)?

2. Collection Interval (DSO) / Days?

3. Inventory Turnover Ratio (Times) ?

4. Holding Interval (Days) ?

5. Account Payable  Turnover Ratio (Times)?

6.Payment Interval (Days)?

7. Does Judon Corp need short-term financing? 

8. Using the information provided, compute the change in operating working captial

 

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Financial ratios are calculated to get information about a firm such as liquidity, profitability, and others. Ratios are helpful in analysing the firm's position and efficiency.

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