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Selected data from Franklin Company follow. Balance Sheets As of December 31 Year 3 Year 2 Accounts receivable $402, 000 $376, 000 Allowance for doubtful
Selected data from Franklin Company follow. Balance Sheets As of December 31 Year 3 Year 2 Accounts receivable $402, 000 $376, 000 Allowance for doubtful accounts (20, 100) (15, 040) Net accounts receivable $381, 900 $360, 960 Inventories, lower of cost or market $475, 000 $450, 000 Income Statement For the Years Ended December 31 Year 3 Year 2 Net credit sales $2, 005, 000 $1, 757, 000 Net cash sales 410, 000 314, 000 Net sales 2, 415, 000 2, 071, 000 Cost of goods sold 1, 602, 000 1, 420, 000 Selling, general, and administrative expenses 240, 600 215, 900 Other expenses 39, 300 23, 000 Total operating expenses $1, 881, 900 $1, 658, 900 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 3.47 : times b. Inventory turnover 3.46 times C. Net margin 22.07 %
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