Answer and Explanation:
The computation of receivables turnover ratio and average collection period for Sun Health and Select Medical is shown below:-
For Sun health
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,630 ÷ (($300 + $287) ÷ 2)
= $3,630 ÷ 293.5
= 12.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 12.37 times
= 29.5 days
For Sun medical
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,940 ÷ (($499 + $438) ÷ 2)
= $3,940 ÷ 468.5
= 8.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 8.41 times
= 43.4 days
Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.
Answer: ART
Explanation:
Account receivable turnover(ART) = Sales revenue/Average Account Receivable
= $47,561/$19,595
= 2.427
Inventory Turnover(INVT) = Cost of sales/Inventory
= $32856/$16240
= 2.023
Property Plant and Equipment Turnover(PPET) = Sales/Property Plant and Equipment
= $47561/$19813
= 2.400
Therefore, the ratio that is highest is the account receivable turnover
Answer:
a. decreases the interest rate and so investment spending increases.
Explanation:
An increase in government spending has a crowd-out effect on the economy as interest rate rises since government borrows more than many businesses in terms of size and volume. The opposite effect results when government spending decreases.
