Suppose the amounts presented here are basic financial infor

Suppose the amounts presented here are basic financial information (in millions) from the 2017 annual reports of Nike and adidas Nike Sales revenue Allowance for doubtful accounts, beginning Allowance for doubtful accounts, ending Accounts receivable balance (gross), beginning Accounts receivable balance (gross), ending adidas $18,559 $10,674 110 128 1,866 1,665 2,843 2,971.0 ? (a) X Your answer is incorrect. Try again Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.) Nike adidas Accounts receivable turnover 6.4 times 6.0 times

Solution

Nike Accounts receivable turnover = net sales/average account receivable nike beginning A/R (2843-74.7) 2768.3 ending                  (2971-111) 2860 total 5628.3 Average account receivable 2814.15 Accounts receivable turnover = 18,559/2814.15 6.6 Answer Adidas Accounts receivable turnover = net sales/average account receivable nike beginning A/R (1866-110) 1756 ending                  (1665-128) 1537 total 3293 Average account receivable 1646.5 Accounts receivable turnover = 10,674/1646.50 6.5 answer