Watts Inc. specializes in imported goods, focusing particularly on food products. For 2019, the company realized net

Question:

Watts Inc. specializes in imported goods, focusing particularly on food products. For 2019, the company realized net sales of $9,700,000 and average net trade accounts receivable were $1,057,000. In 2018, Watts had realized a net loss for the year in the amount of $20,000; however, extraordinary efficiency efforts in 2019 increased net income by $445,000.

Required:

1. Calculate Watts' accounts receivable turnover.

2. Calculate Watts' net profit margin ratio?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...