# Suppose the amounts presented here are basic financial information (in millions) from the 2014...

## Question:

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

Sales revenue $19,878.4$10,214
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.

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...

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Average Collection Period: Formula & Analysis

from Financial Accounting: Homework Help Resource

Chapter 1 / Lesson 9
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