Compute the accounts receivable turnover

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Assignment

Selected data from Komar Company follow.

Balance Sheet
As of December 31

 

2014

2013

  Accounts receivable

500,000

450,000

  Allowance for doubtful accounts

(20,000)

(16,000)

  Net accounts receivable

480,000

434,000

  Inventories, lower of cost or market

600,000

525,000

Income Statement
for the Years Ended December 31

 

2014

2013

  Net credit sales

2,000,000

1,760,000

  Net cash sales

400,000

320,000

 



  Net sales

2,400,000

2,080,000

 



  Cost of goods sold

1,600,000

1,440,000

  Selling, general, and administrative expenses

240,000

216,000

  Other expenses

40,000

24,000

  Total operating expenses

1,880,000

1,680,000

Required

a. Compute the accounts receivable turnover for 2014. (Round your answer to 2 decimal places.)

b. Compute the inventory turnover for 2014. (Round your answer to 2 decimal places.)

c. Compute the net margin for 2013. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Reference no: EM131793123

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