Global Decision C1 A1 BTN 79 Key information from Samsung Sa

Global Decision C1 A1 BTN 7-9 Key information from Samsung (Samsung.com), which is a leading manufacturer of consumer Samsung electronic products, follows. APPLE GOOGLE Current Year One Year Prior Two Years Prior W in millions Accounts receivable, netW 25,168,026 W 24,694,610 W 24,988,532 Sales 200,653,482 206,205,987 228,692,667 Samsung refers to this as \"Trade receivables, net\" in its footnotes. 1. Compute its accounts receivable turnover for the current year. 2. How long does it take on average for Samsung to collect receivables? 3. Refer to BTN 7-2. How does Samsung compare to Apple and Google in terms of its accounts receivable turnover and its collection period?

Solution

(A) Current Year Accounts Receivables

(B) Previous Year Accounts Receivables

C=((A+B)/2)Average Accounts Receivables

(D) Sales Current year

E=(D/C) Accounts Turnover ratio

No of Days in an Year

F= (A/(D/365))No of days to collect Receivables

Samsung

?      25,168,026.00

?    24,694,610.00

? 24,931,318.00

? 200,653,482.00

8.05

365

45.78

Days

Apple

$                16,849.00

$              17,460.00

$            17,154.50

$             233,715.00

13.62

365

26.31

Days

Google

$                11,556.00

$                9,383.00

$            10,469.50

$               74,989.00

7.16

365

56.25

Days

Part 1

Accounts receivables Turnover for Current year = 8.05 Times

Part 2

Samsung Takes approx 46 days to Collect Receivables.

Part 3

Samsungs Accounts receivables turnover ratio is better than Google But not as good as Apple. The Number of days to collect Receivables of Samsung better than Google but lower than Apple.

	(A) Current Year Accounts Receivables	(B) Previous Year Accounts Receivables	C=((A+B)/2)Average Accounts Receivables	(D) Sales Current year	E=(D/C) Accounts Turnover ratio	No of Days in an Year	F= (A/(D/365))No of days to collect Receivables
Samsung	?      25,168,026.00	?    24,694,610.00	? 24,931,318.00	? 200,653,482.00	8.05	365	45.78	Days
Apple	$                16,849.00	$              17,460.00	$            17,154.50	$             233,715.00	13.62	365	26.31	Days
Google	$                11,556.00	$                9,383.00	$            10,469.50	$               74,989.00	7.16	365	56.25	Days