The following information (in $ millions) was taken from recent annual reports of Nike and Under Armour.

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a. Calculate each company’s accounts receivable turnover and average collection period.

b. Which company is doing the best job of managing accounts receivable? How did you reach your conclusion?

c. What additional information would help you in assessing the companies’ accounts receivable management?

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Managerial Accounting

ISBN: 9781119577669

4th Edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: May 05, 2021 06:15 AM

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The following information (in $ millions) was taken from recent annual reports of Nike and Under Armour.

Question:

Nike Under Armour Sales revenue $36,397.0 $4,976.5 Average accounts receivable balance $ 3,587.5 $ 616.2

Step by Step Answer:

a Nike Under Amour AR turnover 3639735875 101 times 497656162 81 times Average ...View the full answer

Managerial Accounting

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