Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounts receivable turnover, inventory turnover, and net margin Selected data from Komar Company follow. Balance Sheet As of December 31 2014 2013 Accounts receivable $

Accounts receivable turnover, inventory turnover, and net margin

Selected data from Komar Company follow.

Balance Sheet As of December 31
2014 2013
Accounts receivable $ 396,000 $ 373,000
Allowance for doubtful accounts (19,800 ) (14,920 )
Net accounts receivable $ 376,200 $ 358,080
Inventories, lower of cost or market $ 482,000 $ 446,000
Income Statement for the Years Ended December 31
2014 2013
Net credit sales $ 2,018,000 $ 1,757,000
Net cash sales 416,000 311,000
Net sales 2,434,000 2,068,000
Cost of goods sold 1,592,000 1,420,000
Selling, general, and administrative expenses 240,100 214,200
Other expenses 40,900 23,100
Total operating expenses $ 1,873,000 $ 1,657,300
Required
a.

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

ACCOUNTS RECEIVABLE TURNOVER ( ) times

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

INVENTORY TURNOVER ( ) times

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

NET MARGIN ( ) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions