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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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