Ratio Analysis Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade accounts receivable were $1,057,000. In the previous year, Watts had realized a net loss for the year in the amount of $20,000; however, extraordinary efficiency efforts in the current year increased net income by $445,000. 1. Calculate Watts’ accounts receivable turnover for the current year. fill in the blank 1 2. Calculate Watts’ net profit margin ratio for the current year.
Ratio Analysis Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade accounts receivable were $1,057,000. In the previous year, Watts had realized a net loss for the year in the amount of $20,000; however, extraordinary efficiency efforts in the current year increased net income by $445,000. 1. Calculate Watts’ accounts receivable turnover for the current year. fill in the blank 1 2. Calculate Watts’ net profit margin ratio for the current year.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 57BE
Related questions
Topic Video
Question
Ratio Analysis
Watts Inc. specializes in imported goods, focusing particularly on food products. During the year, the company realized net sales of $9,700,000 and average net trade
1. Calculate Watts’ accounts receivable turnover for the current year.
fill in the blank 1
2. Calculate Watts’ net profit margin ratio for the current year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning