Presented here is basic financial information (in millions) from the 2006 annual reports of Nike and Adidas.

Question:

Instructions
Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collectionexperiences.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-0470239803

5th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

See More Books

Question Posted: Apr 21, 2012 03:24 AM

See More Questions

Presented here is basic financial information from the 2006 annual reports of Intel and Advanced Micro Devices (AMD), the two primary manufacturers of silicon chips for personal computers....
Presented here is basic financial information (in millions) from the 2009 annual reports of Nike and Adidas. InstructionsCalculate the receivables turnover ratio and average collection period for...
Presented here is basic financial information from the 2009 annual reports of Intel and Advanced Micro Devices (AMD), the two primary manufacturers of silicon chips for personal computers....
F udy A big part of communication is sharing personal information with another person. Some information we believe we have the right to be our own and should remain private. However, the degree to...
Refer to The Home Depot, Inc., 2012 Annual Report (for the fiscal year ended February 3, 2013) in Appendix A. Locate the Five-Year Summary of Financial and Operating Results. In particular, examine...
What are the various ways the SBA helps small businesses?
How many years will it take for your savings account to accumulate $\$ 1,000,000$ if it pays $4 \%$ interest per annum compounded semiannually and you deposit $\$ 10,000$ every 6 -months at the end...
Accountants for Johnson, Inc. have assembled the following data for the year ended December 31, 2015: Prepare Johnsons statement of cash flows using the indirect method. Include an accompanying...
Paul corporation of profit, maximizing monopoly. It sells a patented rabies vaccine for pets and earns economic profits.
1 to 3. First, post the unadjusted balances from the unadjusted trial balance that was given and the adjusting entries that were made in Problem 2-3 into the appropriate T-accounts (on the T-accounts...
Lorenz Company closes its books on July 31. On June 30 the Notes Receivable account balance is $23,800. Notes Receivable includes the following. During July the following transactions were completed....
The following represents selected information taken from a companys aging schedule to estimate uncollectible accounts receivable at year end. Instructions (a) Calculate the total estimated bad debts...
A lens for a digital camera has a focal length given by = 45.0 mm. (a) How close to the image sensor should the lens be placed to form a sharp image of an object that is 5.00 m away? (b) What is the...
What strategies can be employed to handle the complexities of distributed concurrency control and synchronization, especially in scenarios with high contention and distributed data stores?
What impact does society have on laws and policies that effect individuals involved in the criminal justice system? How did the War on Drugs disproportionately affect black families as well as...
Explain the state and federal laws around the well being of kids in foster care and how these protect children and families. What are the laws around the well being of kids in foster care and what...
Family incomes have a mean of $60 000 with a standard deviation of $20 000. The data is normally distributed. 1) What is the probability of a randomly chosen family having an income greater than $50...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct Materials, $7 per unitto be $335,, Direct labor $5 per unit, Variable overhead $6 per...
Fill in the blanks: A try statement ______________ a catch or a finally block, while a try-withresources statement ______________. A. is not required to contain, is not required to contain either B....
Read the following description and Write a response of it. The discretion of public administrators can be decreased, but not altogether eliminated. Officials will use their discretion in any given...
Given the matrices evaluate, where possible, (a) a + b, (b)b T + a, (c)b + C T , (d)C + D, (e) DT + C.
It is one thing to prepare a personal budget; it is another thing to stick to it. Financial planners have suggested various mechanisms to provide support for enforcing personal budgets. One approach...
It is one thing to prepare a personal budget; it is another thing to stick to it. Financial planners have suggested various mechanisms to provide support for enforcing personal budgets. One approach...
It is one thing to prepare a personal budget; it is another thing to stick to it. Financial planners have suggested various mechanisms to provide support for enforcing personal budgets. One approach...
Details of the capital structure of Webber Ltd. appear below: Bonds Number issued Coupon rate Interest payments Years to maturity 27,000 6% semi-annually 10 $90 Current price Preferred shares Number...
An Ice cream company has commissioned an ice sculpture for their end of year celebration. The ice sculpture is in the shape of a giant ice cream cone-the shape can be thought of as a cone with one...
1. A soft drink vendor at a popular beach resort analyzes his sales records and finds that if he seels x cans of pop in one day, his profit in dollars is given by the function P(x) = -0.012+3x-80....

Presented here is basic financial information (in millions) from the 2006 annual reports of Nike and Adidas.

Question:

Nike Sales Allowance for doubtful accounts, Jan. 1 Allowance for doubful accounts, Dec. 31 Accounts receivable balance (gross), Jan. 1 Accounts receivable balance (gross), Dec. 31 $16,325.9 67.6 71.5 2,450.5 Adidas $10,084 81 112 1,046 1,527

Step by Step Answer:

Adidass receivables turnover ratio was over 26 higher 85 67 67 than Nikes w...View the full answer

Financial Accounting Tools for Business Decision Making

Students also viewed these Accounting questions