In: Accounting
Selected are recent balance sheet and income statement information from Coach Inc. and Ann Taylor follows:
($ millions) |
Ann Taylor |
Coach Inc |
Sales |
$2,212 |
$4,763 |
Cost of goods sold |
1,004 |
1,297 |
Average accounts receivable |
19 |
159 |
Average inventory |
204 |
463 |
Average total assets |
907 |
2,870 |
Required
B) from the above details we can observe that,
In case of account Receivable Turnover coach is better & in case of Inventory Turnover Ann Taylor is better in Inventory management and in case of asset Turnover ann Taylor is better that asset can generate sales by 2.44 times.
Overall Ann taylor is better.
If you have any doubts please comment on the answer.