Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of

Question:

Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of Nike and adidas.

Instructions
Calculate the accounts receivable turnover 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

Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

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

See More Books

Question Posted: Apr 07, 2014 10:56 AM

See More Questions

The following information was taken from the 2014 annual reports of Walgreens and L Brands (parent company of The Limited) (dollars in millions): REQUIRED: Compute the conservatism ratios for both...
Determine productivity ratios including receivables turnover and average collection period in year2. 2012 Income Statement ($Million) Net sales Less: Cost of goods sold Less: Depreciation Earnings...
Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable $2,712 6,444 615...
Refer to the adjusted trial balance for Romney's Marketing Company in M4-8. Prepare the closing entry at the end of the current year. M4-8 Romney's Marketing Company has the following adjusted trial...
In Exercises 25 and 26, find the best approximation to a solution of the given system of equations. 1. x + y - z = 2 - y + 2 z = 6 3x + 2y - z = 1 1 -x + z = 0 2. 2x + 3y + z = 2 1 x + y + z = 7 - x...
Assume that Keurig Dr Pepper wants to create a data visualization that compares the total number of cans of Dr Pepper sold in U.S. state. Which of the following charts is BEST way to present the...
Discuss the ratios computed for Tyler Company in problems 13 through 16. What is your assessment of the performance and future potential of Tyler Company? Data From Problem 13:- The following reserve...
Randy Owen invested $8,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Randy withdrew the accumulated amount...
Visit one B2C and one B2B Web site. Examine each carefully, identifying as many relationship building techniques as possible. Do you find extensive differences between the B2C and B2B sites? Discuss...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Kolton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800....
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...
If an ammeter with an internal resistance of 100 and a current capacity of 2 mA is to measure 5 A, determine the value of the resistance needed. Calculate the power dissipated in the shunt resistor?
Describe the social group and the group's dynamics, including a summary of factors that contribute to the group's dynamics of racial minorities and veterans.
Who knows how clean a water bottle is? It's pretty dark in most of them! GPS Marketers was asked to help market a new water bottle that has an ultraviolet light in the lid to kill mold, bacteria, and...
Many patients worry about compromised privacy and security, especially since these databases are accessible via the Internet. Should patients be allowed to opt-out of these data collection systems or...
Write a Java program to design the following GUI using swing components. Registration Form Registration Form Name abc Gender Male Female Password 1990 DDMMYYYY Date Of Birth Mobile Number 0546532111...
1. Under John Locke's point of view, does government have the right to tax people? Where does this right of government come from? 2. What can officers of the military do and not do to a soldier under...
In terms of an operational definition, when is a molecule considered to be polar?
As of January 1, 2018, Room Designs, Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January...
Explain what a seven-year swap rate is.
(a) Explain the income measurement process in a merchandising company. (b) How does income measurement differ between a merchandising company and a service company?
(a) Explain the income measurement process in a merchandising company. (b) How does income measurement differ between a merchandising company and a service company?
Markoff Co. has sales revenue of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?
Large-scale industrial production - accompanied by massive technological change, expanding international communication networks, and pro-growth government policies-generated rapid economic...
How can this relate to individuals who have had a TBI and are currently homeless or marginally housed?
1. According to Marxian theory, are crises an economic process inherent to the accumulation dynamics of current capitalism? Justify your answer. 2. According to Marxian theory, what do you consider...

Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of

Question:

Nike adidas 19,17 $10,381 Sales revenue Allowance for doubtful accounts, beginning Allowance for doubtful accounts, ending Accounts receivable balance (gross), beginning Accounts receivable balance (gross), ending 78.4 110.8 2,873.7 2,994.7 119 124 1,743 1,553

Step by Step Answer:

Both companies have the same turnover ratios and average co...View the full answer

Accounting Tools for Business Decision Making

Students also viewed these Accounting questions