Selected data of Islander Company follow: As of December 31,Balance Sheet Data 20X1 20X0 Accounts receivable$500,000 $470,000 Allowance for doubtful accounts (25,000) (20,000)Net accounts receivable 475,000 450,000 Inventories—lower of cost or market 600,000 550,000 Year Ended December 31,Income Statement Data 20X1 20X0 Net credit sales$2,500,000 $2,200,000 Net cash sales 500,000 400,000 Net sales 3,000,000 2,600,000 Cost of goods sold 2,000,000 1,800,000 Selling, general, and administrative expenses 300,000 270,000 Other 50,000 30,000 Total operating expenses 2,350,000 2,100,000 Required:What is the accounts receivable turnover for 20X1?What is the inventory turnover for 20X1?(Round your final answers to 2 decimal places.)1. Accounts receivable turnover times = _____ times2. Inventory turnover times = ____ times

The accounts receivable turnover is calculated by dividing the net credit sales by the average…

Answered: Selected data of Islander Company…

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 of Islander Company follow:

	As of December 31,
Balance Sheet Data		20X1			20X0
Accounts receivable	$	500,000		$	470,000
Allowance for doubtful accounts		(25,000	)		(20,000	)
Net accounts receivable		475,000			450,000
Inventories—lower of cost or market		600,000			550,000

	Year Ended December 31,
Income Statement Data		20X1		20X0
Net credit sales	$	2,500,000	$	2,200,000
Net cash sales		500,000		400,000
Net sales		3,000,000		2,600,000
Cost of goods sold		2,000,000		1,800,000
Selling, general, and administrative expenses		300,000		270,000
Other		50,000		30,000
Total operating expenses		2,350,000		2,100,000