Problem: Module Textbook Problem
Learning Objectives:
Calculate ratios for assessing a company's liquidity
Calculate ratios for assessing a company's managerial effectiveness
Selected data from Adams Company follow:
Balance Sheets
As of December
Year Year
Accounts receivable $ $
Allowance for doubtful accounts
Net accounts receivable $ $
Inventories, lower of cost or market $ $
Income Statement
For the Years Ended December
Year Year
Net credit sales $ $
Net cash sales
Net sales
Cost of goods sold
Selling, general, and administrative expenses
Other expenses
Total operating expenses $ $
Required
a Compute the accounts receivable turnover for Year
b Compute the inventory turnover for Year
c Compute the net margin for Year
