Selected data from Fanning Company follow: Balance Sheets As of December 31 Year 3 Year 2 Accounts receivable
Selected data from Fanning Company follow: Balance Sheets As of December 31 Year 3 Year 2 Accounts receivable
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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Selected data from Fanning Company follow:
Balance Sheets As of December 31 |
|||||||
Year 3 | Year 2 | ||||||
$ | 392,000 | $ | 375,000 | ||||
Allowance for doubtful accounts | (19,600 | ) | (15,000 | ) | |||
Net accounts receivable | $ | 372,400 | $ | 360,000 | |||
Inventories, lower of cost or market | $ | 478,000 | $ | 431,000 | |||
Income Statement For the Years Ended December 31 |
|||||||
Year 3 | Year 2 | ||||||
Net credit sales | $ | 2,019,000 | $ | 1,753,000 | |||
Net cash sales | 408,000 | 314,000 | |||||
Net sales | 2,427,000 | 2,067,000 | |||||
Cost of goods sold | 1,602,000 | 1,434,000 | |||||
Selling, general, and administrative expenses | 239,600 | 214,500 | |||||
Other expenses | 39,600 | 22,100 | |||||
Total operating expenses | $ | 1,881,200 | $ | 1,670,600 | |||
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.
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