Question

Key information from GOME (www.GOME.com.hk), which is the leading chain retailer of consumer electronic products and household appliances in China, follows.
1. Compute the accounts receivable turnover for the current year.
2. How long does it take on average for GOME to collect receivables?
3. How does GOME compare to Best Buy and RadioShack in terms of its accounts receivable turnover and its collection period?
4. GOME reports an aging analysis of its receivables, based on invoice dates, as follows (in RMB 000s) as of December 31, 2008. Compute the percent of receivables in each category.
RMB 000s Total Receivables
Within 3 months . . . . . . . . . . . 41,787
3 to 6 months . . . . . . . . . . . . . 1,615
6 months to 1 year . . . . . . . . . 1,043
Over 1 year . . . . . . . . . . . . . . . 647
5. GOME reports more than 7% of its receivables are “over 3 months past due.” However, it provides no allowance as its “directors are of the opinion that no provision for impairment is necessary . . . because there has not been a significant change in credit quality of the individual debtors.” Does this finding impact your assessment of GOME?


$1.99
Sales0
Views74
Comments0
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000