Question

Suppose the amounts presented here are basic financial information (in millions) from the 2022 annual reports...

Suppose the amounts presented here are basic financial information (in millions) from the 2022 annual reports of Nike and Adidas.

Nike

Adidas

Sales revenue

 $18,572.4 $10,817.4

Allowance for doubtful accounts, beginning

 75.0 125.0

Allowance for doubtful accounts, ending

 111.0 128.0

Accounts receivable balance (gross), beginning

 2,843.0 1,866.0

Accounts receivable balance (gross), ending

 2,971.0 1,665.0

(a1)

Correct answer iconYour answer is correct.

Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.)

Nike

Adidas

Accounts receivable turnover

 enter the accounts receivable turnover in times rounded to 1 decimal place times enter the accounts receivable turnover in times rounded to 1 decimal place times

eTextbook and Media

Assistance Used

  • eTextbook

  

Attempts: 2 of 6 used

(a2)

Calculate the average collection period for both companies. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Nike

Adidas

Average collection period

 enter the average collection period in days rounded to 1 decimal place days enter the average collection period in days rounded to 1 decimal place days
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(a1)

Correct answer iconYour answer is correct.

Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.)

Nike

Adidas

Accounts receivable turnover

 18572.40/2814 = 6.6 times 10817.40/1639 = 6.6 times

(a2)

Calculate the average collection period for both companies. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Nike

Adidas

Average collection period

 365/6.6 = 55.3 days 55.3 days
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the amounts presented here are basic financial information (in millions) from the 2022 annual reports...
Suppose the amounts presented here are basic financial information (in millions) from the 2022 annual reports of Nike and Adidas. Nike Adidas Sales revenue $20,235.6 $11,723.8 Allowance for doubtful accounts, beginning 71.0 111.0 Allowance for doubtful accounts, ending 102.0 112.0 Accounts receivable balance (gross), beginning 2,804.0 1,806.0 Accounts receivable balance (gross), ending 2,913.0 1,629.0 1. Calculate the accounts receivable turnover for both companies. 2. Calculate the average collection period for both companies.
Suppose the amounts presented here are basic financial information (in millions) from the 2019 annual reports...
Suppose the amounts presented here are basic financial information (in millions) from the 2019 annual reports of Nike and Adidas. Nike Adidas Sales revenue $20,476.5 $11,080.8 Allowance for doubtful accounts, beginning 78 120 Allowance for doubtful accounts, ending 110 122 Accounts receivable balance (gross), beginning 2,862 1,750 Accounts receivable balance (gross), ending 2,936 1,570 Calculate the accounts receivable turnover for both companies. Calculate the average collection period for both companies.
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 740 $ 77 Accounts receivable (net) 1,980 1,830 Inventory 900 910 Other current assets 310 443 Total current assets $3,930 $3,260 Total current liabilities $1,990 $1,630 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities...
At December 31, 2021, Splish Brothers Inc. reported this information on its balance sheet. Accounts receivable...
At December 31, 2021, Splish Brothers Inc. reported this information on its balance sheet. Accounts receivable $581,000 Less: Allowance for doubtful accounts 37,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,355,000 2. Sales returns and allowances 49,000 3. Collections of accounts receivable 2,050,000 4. Write-offs of accounts receivable deemed uncollectible 38,000 5. Recovery of bad debts previously written off as uncollectible 16,000 Compute the accounts receivable turnover and average collection period, assuming...
The following data exists for Crane Company. 2022 2021 Accounts Receivable $84,000 $78,000 Net Sales 563,000...
The following data exists for Crane Company. 2022 2021 Accounts Receivable $84,000 $78,000 Net Sales 563,000 415,000 Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2022. (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) Accounts receivable turnover Enter the accounts receivable turnover in times times Average collection period Enter the average collection period in days days
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020...
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $2,000 $2,400 $2,700 Ending inventory 2,400 2,700 2,800 Cost of goods sold 20,680 23,715 23,650 Sales revenue 38,800 42,500 42,460 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnover times enter an inventory turnover times enter an inventory turnover times eTextbook and...
Sunland Company has these comparative balance sheet data: SUNLAND COMPANY Balance Sheets December 31 2022 2021...
Sunland Company has these comparative balance sheet data: SUNLAND COMPANY Balance Sheets December 31 2022 2021 Cash $ 33,345 $ 66,690 Accounts receivable (net) 155,610 133,380 Inventory 133,380 111,150 Plant assets (net) 444,600 400,140 $766,935 $711,360 Accounts payable $ 111,150 $ 133,380 Mortgage payable (15%) 222,300 222,300 Common stock, $10 par 311,220 266,760 Retained earnings 122,265 88,920 $766,935 $711,360 Additional information for 2022: 1. Net income was $31,000. 2. Sales on account were $380,200. Sales returns and allowances amounted to...
The following data exists for Ivanhoe Company. 2022 2021 Accounts Receivable $85,000 $77,000 Net Sales 561,000...
The following data exists for Ivanhoe Company. 2022 2021 Accounts Receivable $85,000 $77,000 Net Sales 561,000 477,000 Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2022. (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) Accounts receivable turnover times Average collection period days
The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For the Years...
The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,894,200 $1,755,700 Cost of goods sold 1,063,575 1,011,200 Gross profit 830,625 744,500 Selling and administrative expenses 505,200 484,200 Income from operations 325,425 260,300 Other expenses and losses    Interest expense 23,500 21,500 Income before income taxes 301,925 238,800 Income tax expense 93,065 74,500 Net income $ 208,860 $ 164,300 CULLUMBER COMPANY Balance Sheets December 31 Assets 2022 2021...
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the...
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $ 2,530 $ 245 $ 232 Select Medical 2,840 444 383    Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Round Average accounts receivable to 1 decimal place. Enter your answers in millions.)    Receivables Turnover Ratio...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT