Selected data from Emporia Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Year 3 Year 2 000 009$ $480,000 (o00'06) Net accounts receivable To00'oz) Inventories, lower of cost or market 000'09S$ 000'095$ $500,000 000'005$ Income Statement For the Years Ended December 31 Year 3 Year 2 Net credit sales 000'005'7s 1,950,000 000'009 Net cash sales 000'OsE Net sales 000'000 'E 000'005 'z Cost of goods sold Selling, general, and administrative expenses 000*008'T 000'00s 000'08 $1,810,000 1,520,000 000'057 Other expenses 000ʻ0S Total operating expenses $2,180,000 Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover for Year 3. c. Compute the net margin for Year 2. (For all requirements, round your answers to 2 decimal places.) times Accounts receivable turnover a. times Inventory turnover b. Net margin
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![rk: Assignment 2 i
paes
Selected data from Emporia Company follow:
Balance Sheets
As of December 31
Accounts receivable
Year 3
Year 2
000 009$
(000'06)
000'09s$
$460,000
Allowance for doubtful accounts
000'08t$
Net accounts receivable
To00'oz)
Inventories, lower of cost or market
$500,000
000'00t$
Income Statement
For the Years Ended December 31
Year 3
Year 2
Net credit sales
000'005zs
000'009
Net cash sales
000'0s6 'TS
Net sale3
000'000 'E
000'005 'Z
1,520,000
Cost of goods sold
Selling, general, and administrative expenses
Other expenses
0001008 'T
000'008
000'08
000'08I'ZS
$1,810,000
000'05Z
000'os
Total operating expenses
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.)
times
Accounts receivable turnover
a.
times
Inventory turnover
Net margin
C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80998f00-6fe5-4524-a68f-93f247b136b5%2F509cc793-8736-46b9-a4f5-b4934ae5acbd%2Frb8ea2l_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![Corporate Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305653535/9781305653535_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)