Selected data from Emporia Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable $ 600,000 $ 480,000 Allowance for doubtful accounts (40,000 ) (20,000 ) Net accounts receivable $ 560,000 $ 460,000 Inventories, lower of cost or market $ 500,000 $ 400,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales $ 2,400,000 $ 1,950,000 Net cash sales 600,000 450,000 Net sales 3,000,000 2,400,000 Cost of goods sold 1,800,000 1,520,000 Selling, general, and

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Question:

Selected data from Emporia Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable $ 600,000 $ 480,000 Allowance for doubtful accounts (40,000 ) (20,000 ) Net accounts receivable $ 560,000 $ 460,000 Inventories, lower of cost or market $ 500,000 $ 400,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales $ 2,400,000 $ 1,950,000 Net cash sales 600,000 450,000 Net sales 3,000,000 2,400,000 Cost of goods sold 1,800,000 1,520,000 Selling, general, and administrative expenses 300,000 240,000 Other expenses 80,000 50,000 Total operating expenses $ 2,180,000 $ 1,810,000 Required Compute the accounts receivable turnover for 2018. Compute the inventory turnover for 2018. Compute the net margin for 2017.

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Answer:Compute the accounts receivable turnover for 2018.4.29 timesCompute the inventory turnover for 20183.6 timesCompute the net margin for 2017.24.58%Explanation: Compute the accounts receivable turnover for 2018. accounts receivable turnover = Sales / Accounts receivable                                                   =  $ 2,400,000 / $ 560,000                                                   = 4.29 timesCompute the inventory turnover for 2018 Inventory turnover = cost of Sales / inventory                                 = $1,800,000 /  $ 500,000                                 = 3.6 timesCompute the net margin for 2017.net margin = Net Profit / Sales × 100                   = (2,400,000-1,810,000) / 2,400,000  × 100                   = 24.58%

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