Calculate the accounts receivable turnover ratio

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Case Study: Reading and Use the Annual Report Case Study from Northrop Grumman's 2021 financial statements. This choice will work only if the company is using the straight-line depreciation method. The company's choice of depreciation method can be located in the notes to the financial statement in the annual report. If the company does not use this method or does not have long-term assets, you will need to choose another company. Select a company that a fellow student has not already posted.

Questions: Using your selected company's financial statement,

Calculate the average life, average age, and asset turnover ratios. Discuss what each ratio tells you in the context of your chosen company.
Calculate the accounts receivable turnover ratio and convert that ratio into days. Discuss what each ratio tells you in the context of your chosen company.

 

Reference no: EM133331532

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