Exercise 9-11A (Static) Accounts receivable turnover, inventory turnover, and net margin LO 9-2, 9-4 Selected...
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Accounting
Exercise 9-11A (Static) Accounts receivable turnover, inventory turnover, and net margin LO 9-2, 9-4
Selected data from Emporia Company follow:
Balance Sheets As of December 31
Year 3
Year 2
Accounts receivable
$
600,000
$
480,000
Allowance for doubtful accounts
(40,000
)
(20,000
)
Net accounts receivable
$
560,000
$
460,000
Inventories, lower of cost or market
$
500,000
$
400,000
Income Statement For the Years Ended December 31
Year 3
Year 2
Net credit sales
$
2,400,000
$
1,950,000
Net cash sales
600,000
450,000
Net sales
3,000,000
2,400,000
Cost of goods sold
1,800,000
1,520,000
Selling, general, and administrative expenses
300,000
240,000
Other expenses
80,000
50,000
Total operating expenses
$
2,180,000
$
1,810,000
Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover for Year 3. c. Compute the net margin for Year 2. (For all requirements, round your answers to 2 decimal places.)
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