Question

Using Apple's 2016 10-K What was Apple's accounts receivable turnover (rounded to two decimal places) in...

Using Apple's 2016 10-K What was Apple's accounts receivable turnover (rounded to two decimal places) in 2015 and 2016? (Accounts receivable were $17,460,000,000 at the end of 2014.)

I'm not sure if I did it right.

Accounts Receivable turnover ratio: = Net Sales/Average Accounts Receivable.

2015

($17460 million + $16,849 million)/2 =$17154.5 million

Net Sales: $233,715 million/$17,154.5=13.62

My Answer: 2015 - 13.62 times.

2016

($16,849 million +$15,754 million)/2 = 16,301.5

Net sales: $215,639/16,301.5 = 13.22

My answer for 2016: 13.22

Please help and explain how to solve this.

Homework Answers

Answer #1

Accounts receivable turnover is used to calculate the effectiveness by which company is collecting it's receivables.

A high receivables turnover ratio indicates that a company’s collection of accounts receivable is efficient. Whereas the low receivable ratio it is inefficient.

The formula of receivable turnover ratio = net credit sales / average receivables

Since credit sales is not given in the data net sales are assumed to be credit sales.

Average of receivable is taken because last date receivable doesn't indicate the receivable of whole year so avg is taken to estimate the level

2015

($17460 million + $16,849 million)/2 =$17154.5 million

Accounts receivable turnover ratio = $233,715 million/$17,154.5=13.62

2016

($16,849 million +$15,754 million)/2 = 16,301.5

Accounts receivable turnover ratio= $215,639/16,301.5 = 13.22

The answer given in the question is absolutely correct.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the company CISCO 2016 Accounts Receivable Turnover?--use “Total Revenue” (instead of net sales on...
What is the company CISCO 2016 Accounts Receivable Turnover?--use “Total Revenue” (instead of net sales on account) as the numerator. What does it express?
Accounts Receivable Turnover The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars,...
Accounts Receivable Turnover The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $209,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash $18,300 $18,000 Accounts receivable (net) 45,000 40,000 Inventory 39,500 43,700 Total current assets 102,800 101,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets...
CARLA VISTA CO. Balance Sheets December 31 2017 2016 Cash $ 16,140 $ 32,280 Accounts receivable...
CARLA VISTA CO. Balance Sheets December 31 2017 2016 Cash $ 16,140 $ 32,280 Accounts receivable (net) 75,320 64,560 Inventory 64,560 53,800 Plant assets (net) 215,200 193,680 $371,220 $344,320 Accounts payable $ 53,800 $ 64,560 Mortgage payable (15%) 107,600 107,600 Common stock, $10 par 150,640 129,120 Retained earnings 59,180 43,040 $371,220 $344,320 Additional information for 2017: 1. Net income was $32,500. 2. Sales on account were $392,900. Sales returns and allowances amounted to $27,300. 3. Cost of goods sold was...
Inventory Turnover for Nordstrom The following amounts are available from the 2015 financial statements in the...
Inventory Turnover for Nordstrom The following amounts are available from the 2015 financial statements in the Form 10-K for Nordstrom, Inc., the fashion retailer. (All amounts are in millions of dollars and January 30, 2016, is the end of the company’s 2015 fiscal year.) Cost of sales and related buying and occupancy costs $9,168 Merchandise inventories, January 30, 2016 1,945 Merchandise inventories, January 31, 2015 1,733 Required: 1. Compute Nordstrom’s inventory turnover ratio for 2015. Do not round intermediate calculations...
TravelToday, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on...
TravelToday, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Allowance for Doubtful Accounts (dollars in thousands) Beginning Increases for Decreases for Ending Year Balance Bad Debt Expense Write-Offs Balance 2016 $ 9,300 $ 4,150 $ ? $ 1,350 2015 8,300 4,750 3,750 9,300 2014 12,800 1,050 5,550 8,300 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2014 amounts from the...
nventory Turnover for Butterworth Machine The following amounts are available from the 2015 financial statements in...
nventory Turnover for Butterworth Machine The following amounts are available from the 2015 financial statements in the Form 10-K for Butterworth Machine, Inc., the fashion retailer. (All amounts are in millions of dollars and January 30, 2016, is the end of the company’s 2015 fiscal year.) Cost of sales and related buying and occupancy costs $6,359 Merchandise inventories, January 30, 2016 1,337 Merchandise inventories, January 31, 2015 1,258 Required: 1. Compute Butterworth Machine's inventory turnover ratio for 2015. If required,...
1. Using these data from the comparative balance sheet of Crane Company, perform horizontal analysis. (If...
1. Using these data from the comparative balance sheet of Crane Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.) Increase or (Decrease) Dec. 31, 2022 Dec. 31, 2021 Amount Percentage Accounts receivable $ 489,060 $ 429,000 $enter a dollar amount enter percentages rounded to 0 decimal places % Inventory $ 731,250 $ 625,000 $enter a dollar amount enter...
The asset side of the 2016 balance sheet for Leggett & Platt (a furniture manufacturer) follows....
The asset side of the 2016 balance sheet for Leggett & Platt (a furniture manufacturer) follows. The company reported net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. Use this information to answer the requirements: LEGGETT & PLATT, INCORPORATED Consolidated Balance Sheets (excerpts) (in millions) Dec. 31, 2016 Dec. 31, 2015 Current Assets Cash and cash equivalents $281.9 $ 253.2 Trade receivables, net of allowance $7.2 and $9.3, at December 31, 2016 and 2015, respectively 450.8 448.7...
using Walmarts most recent 10-k report, please add an analysis for the Liquidity Ratio ( A,...
using Walmarts most recent 10-k report, please add an analysis for the Liquidity Ratio ( A, B, C) (if you would do at least one or of them id be grateful) Compute and analyze the following groups of ratios for your company and explain how they affect the investors’ or creditors’ decisions regarding the company in an essay(800 words or more (300 each part)). Please include an introduction sentence referencing the sources of data for ratios. Provide a comparative analysis...
Question 291 pts Ward Corporation had net income of P2 million in 2018. Using the 2018...
Question 291 pts Ward Corporation had net income of P2 million in 2018. Using the 2018 financial elements as the base data, net income decreased by 70% in 2019 and increased by 175% in 2020. The respective net income reported by Ward Corporation for 2019 and 2020 are: Group of answer choices P1,400,000 and P3,500,000 P1,400,000 and P5,500,000 P600,000 and P5,500,000 P5,500,000 and P600,000 Flag this Question Question 301 pts Eugene Store had net credit sales of P6,500,000 and cost...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT