Ratio Analysis}

The following information was taken from Bash Ltd.'s trial balances as of December 31, 2018, and December 31, 2019.

\section*{Required:}
1. Calculate the net profit margin and accounts receivable turnover for 2019. (Note: Round answers to two decimal places.)
2. How much does Bash make on each sales dollar?
3. How many days does the average receivable take to be paid (assuming all sales are on account)?

Exercise

Transcribed Image Text:

12/31/2019 Accounts receivable $ 32,000 12/31/2018 $ 39,000 Accounts payable 47,000 36,000 Sales 219,000 128,000 Sales returns 4,000 2,300 Retained earnings 47,000 16,000 Dividends declared 5,000 1,000 Net income 36,000 9,000