A recent annual report for Adobe Inc. contained the following data: Required: 1. Determine the receivables turnover
Question:
A recent annual report for Adobe Inc. contained the following data:
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
2. Explain the meaning of each calculated number.
Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) (dollars in thousands) Current Year $ 1,544,459 9,650 $ 1,534,809 $11,171,297 Previous Year $1,330,559 14,981 $1,315,578
Step by Step Answer:
Req 1 Dollar amounts in thousands 1315578 1534809 2 Req 2 The ...View the full answer
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
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