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.