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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
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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 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.

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