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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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