The Following Information Is Available for All-4-U Company for the Year

question 19

Essay

The following information is available for All-4-U Company for the year ending December 31,2012:
$\begin{array}{llll}\text { Net Sales } & \$ 5,000,000 & \text { Accounts Receivable December 31, 2011 } & \$ 1,250,000\\\text { Cost of goods sold } & \$ 3,500,000 & \text { Accounts Receivable December } 31,2012 & \$ 1,000,000\\\text { Operating Income } & \$ 600,000 & \\\text { Net Income } & \$ 400,000 \end{array}$ A) Compute the gross profit ratio for 2012.
B) Compute the operating margin ratio for 2012.
C) Compute the net profit margin ratio for 2012.
D) Compute the accounts receivable turnover for 2012.

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Definitions:

Computer

An electronic device capable of processing and storing data, and performing tasks according to a set of instructions.

Knowledge Base

A body of knowledge in a particular area that makes it easier to master new information in that area.

Master

An individual with control over something or someone, or a person highly skilled in a particular craft or subject.

Particular Area

A specific region or segment of space designated for a certain purpose or characterized by a particular attribute.