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Selected data from Adams Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost
Selected data from Adams Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Year 3 $ 400,000 (20,000). $380,000 Year 2 $372,000 (14,880) $357,120 $443,000 $480,500 Year 2 $1,752,000 303,000 Income Statement For the Years Ended December 31 Year 3 Net credit sales $ 2,018,000 Net cash sales 404,000 Net sales 2,422,000 Cost of goods sold 1,604,000 Selling, general, and administrative expenses 239,200 Other expenses 39,200 Total operating expenses $1,882,400 2,055,000 1,428,000 214,900 22,800 $1,665,700 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.) a. Accounts receivable turnover times b. Inventory turnover times c. Net margin 0%
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