Accounts receivable turnover, inventory turnover, and net marginSelected data from Hyatt C
Accounts receivable turnover, inventory turnover, and net margin
Selected data from Hyatt Company follow.
2006
2005Balance Sheet
As of December 31
Accounts Receivable
$400,000
$376,000
Allowance for Doubtful Accounts
(20,000)
(16,000)
Net Accounts Receivable
$380,000
$360,000
Inventories, Lower of Cost or Market
$480,000
$440,000
Income Statement for the Years Ended December 31
2006
2005
Net Credit Sales
$2,000,000
$1,760,000
Net Cash Sales
400,000
320,000
Net Sales
2,400,000
2,080,000
Cost of Goods Sold
1,600,000
1,440,000
Selling, General, & Administrative Expenses
240,000
216,000
Other Expenses
40,000
24,000
Total Operating Expenses
$1,880,000
$1,680,000
Required
Compute the following.
a. The accounts receivable turnover for 2006.
b. The inventory turnover for 2006.
c. The net margin for 2005.
