Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of Nike and Adidas.
|Allowance for doubtful accounts, beginning||75.2||130|
|Allowance for doubtful accounts, ending||105.5||135|
|Accounts receivable balance (gross), beginning||3,413.7||1,504|
|Accounts receivable balance (gross), ending||3,530.7||1,259|
Calculate the accounts receivable turnover for both companies.
Accounts Receivable Turnover:
The accounts receivable turnover ratio is an activity ratio that measures how many times a company collects its accounts receivable on average per year. Generally, a higher accounts receivable turnover is better.
Answer and Explanation:
The accounts receivable turnover ratio is sales divided by average net accounts receivable. It is a measure of how many times a company collects its...
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Financial Accounting: Homework Help ResourceChapter 1 / Lesson 9