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Selected data from Campbell Company follow. Balance Sheets As of December 31 Year 3 Year 2 Accounts receivable $399,000 $375,000 Allowance for doubtful accounts (19,950)
Selected data from Campbell Company follow.
Balance Sheets | ||
---|---|---|
As of December 31 | ||
Year 3 | Year 2 | |
Accounts receivable | $399,000 | $375,000 |
Allowance for doubtful accounts | (19,950) | (15,000) |
Net accounts receivable | $379,050 | $360,000 |
Inventories, lower of cost or market | $480,500 | $445,000 |
Income statement As of end of Dec 31
Net credit sales | $2,011,000 | $1,757,000 |
---|---|---|
Net cash sales | 410,000 | 301,000 |
Net sales | 2,421,000 | 2,058,000 |
Cost of goods sold | 1,598,000 | 1,432,000 |
Selling, general, and administrative expenses | 240,800 | 215,800 |
Other expenses | 40,000 | 22,200 |
Total operating expenses | $1,878,800 | $1,670,000 |
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.
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