The account receivable turnover is net credit sales/Average account receivable. Net credit sales is 12,101,184,389 and Average accounts receivable is 3,196,357,007. Therefore, the result is 3.78. The Inventory turnover is a measure ofthe number of times inventory is sold or used in a time period such as a year. The equation for inventory turnover equals the cost of goods sold divided by the aver
D. Does the cash flows statement add any further information to that provided by the income statement or the balance sheet? Explain.
The statement of cash flows is needed to form a complete picture ofthe financial position of a company. It shows all the cash collected and all the cash disbursed during the period. And each cash flow relates to one of three business activities: operating, in
of notice and we will figure out what is making these differences between sales and gross profit in process of time.
(3) Common size income statements
(%) 2009 2008 2007 2006 2005
sales 100 100 100 100 100
gross profit 0 7 17 10 8
operating income -4 3 11 5 4
income before income tax -10 1 9 4 4
net income -8 1 7 1 0
As we can see from the common size income statements, by somet
the company’s profitability. First, the calculation results above shows the ROA of three companies during 2009. Compared with Tuksu E&C and Keryoung, Hyundai E&C shows the highest ROA, 5.6 % among three companies. So we can conclude that the profitability of Hyundai E&C is the best and they performed well during last year 2009.
Second, we analyzed the ROA of Hyundai according to time passed d