Ratio Analysis Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade accounts receivable were $1,057,000. In the previous year, Watts had realized a net loss for the year in the amount of $20,000; however, extraordinary efficiency efforts in the current year increased net income by $445,000. 1. Calculate Watts’ accounts receivable turnover for the current year. fill in the blank 1 2. Calculate Watts’ net profit margin ratio for the current year.
Ratio Analysis Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade accounts receivable were $1,057,000. In the previous year, Watts had realized a net loss for the year in the amount of $20,000; however, extraordinary efficiency efforts in the current year increased net income by $445,000. 1. Calculate Watts’ accounts receivable turnover for the current year. fill in the blank 1 2. Calculate Watts’ net profit margin ratio for the current year.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 14P
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Ratio Analysis
Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade
1. Calculate Watts’ accounts receivable turnover for the current year.
fill in the blank 1
2. Calculate Watts’ net profit margin ratio for the current year.
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