Selected data of the Peninsula Company follow: As of December 31 Balance Sheet Data 20X2 20X1 Accounts
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Question:
Selected data of the Peninsula Company follow:
As of December 31 | ||||||||||||
Balance Sheet Data | 20X2 | 20X1 | ||||||||||
Accounts receivable | $ | 671,000 | $ | 642,000 | ||||||||
Allowance for doubtful accounts | 31,000 | 22,000 | ||||||||||
Net accounts receivable | $ | 640,000 | $ | 620,000 | ||||||||
Inventories—lower of cost or market | $ | 542,500 | $ | 642,500 | ||||||||
Year Ended December 31 | ||||||||||||
Income Statement Data | 20X2 | 20X1 | ||||||||||
Net credit sales | $ | 3,150,000 | $ | 3,000,000 | ||||||||
Net cash sales | 800,000 | 600,000 | ||||||||||
Net sales | $ | 3,950,000 | $ | 3,600,000 | ||||||||
Cost of goods sold | $ | 2,370,000 | $ | 2,160,000 | ||||||||
Selling, general, and administrative expenses | 475,000 | 350,000 | ||||||||||
Other | 150,000 | 125,000 | ||||||||||
Total operating expenses | $ | 2,995,000 | $ | 2,635,000 | ||||||||
Net income | $ | 955,000 | $ | 965,000 | ||||||||
Required:
a. What is the accounts receivable turnover for 20X2?
b. What is the inventory turnover for 20X2?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds
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