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Selected data from Vernon Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Year 3 $ 400,000 (20,000) 380,000 $ 482,000 Income Statement For the Years Ended December 31 * Year 2 $ 373,000 (14,920) $ 358,080 $ 441,000 Year 3 $ 2,001,000 408,000 2,409,000 1,596,000 240,500 39,800 $ 1,876,300 Net credit sales Net cash sales Net sales Cost of goods sold Selling, general, and administrative expenses Other expenses 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. Note: For all requirements, round your answers to 2 decimal places. Year 2 $1,751,000 305,000 2,056,000 1,426,000 216,000 23,500 $1,665,500

Selected data from Vernon Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Year 3 $ 400,000 (20,000) 380,000 $ 482,000 Income Statement For the Years Ended December 31 * Year 2 $ 373,000 (14,920) $ 358,080 $ 441,000 Year 3 $ 2,001,000 408,000 2,409,000 1,596,000 240,500 39,800 $ 1,876,300 Net credit sales Net cash sales Net sales Cost of goods sold Selling, general, and administrative expenses Other expenses 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. Note: For all requirements, round your answers to 2 decimal places. Year 2 $1,751,000 305,000 2,056,000 1,426,000 216,000 23,500 $1,665,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Selected data from Vernon Company follow: Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Net credit sales Net cash sales Net sales Cost of goods sold Balance Sheets As of December 31 Selling, general, and administrative expenses Other expenses Total operating expenses a. Accounts receivable turnover b. Inventory turnover c. Net margin Year 3 $ 400,000 (20,000) $ 380,000 $ 482,000 Income Statement For the Years Ended December 31 Year 2 $ 373,000 (14,920) $ 358,080 $ 441,000 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. Note: For all requirements, round your answers to 2 decimal places. times times % Year 3 $ 2,001,000 408,000 305,000 2,409,000 2,056,000 1,596,000 1,426,000 240,500 216,000 39,800 23,500 $ 1,876,300 $ 1,665,500 Year 2 $1,751,000
Transcribed Image Text:Selected data from Vernon Company follow: Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Net credit sales Net cash sales Net sales Cost of goods sold Balance Sheets As of December 31 Selling, general, and administrative expenses Other expenses Total operating expenses a. Accounts receivable turnover b. Inventory turnover c. Net margin Year 3 $ 400,000 (20,000) $ 380,000 $ 482,000 Income Statement For the Years Ended December 31 Year 2 $ 373,000 (14,920) $ 358,080 $ 441,000 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. Note: For all requirements, round your answers to 2 decimal places. times times % Year 3 $ 2,001,000 408,000 305,000 2,409,000 2,056,000 1,596,000 1,426,000 240,500 216,000 39,800 23,500 $ 1,876,300 $ 1,665,500 Year 2 $1,751,000
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