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Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Comparative figures for Apple and Google follow.
$ millions
Apple
Google
Current Year
One Year Prior
Two Years Prior
Current Year
One Year Prior
Two Years Prior
Accounts receivable, net
$ 22,926
$ 23,186
$ 17,874
$ 25,326
$ 20,838
$ 18,336
Net sales
260,174
265,595
229,234
161,857
136,819
110,855
Required:1. Compute the accounts receivable turnover for the two most recent years for (a) Apple and (b) Google.2. Which company more quickly collects its accounts receivable in the current year?
Comparative figures for Apple and Google follow.
Apple
One Year
Prior
$ 15,754
215,639
Google
Current
Year
$ 17,874
229,234
Two Years
Prior
$ 16,849
233,715
Current
Year
$ 18,336
110,855
Two Years
Prior
$11,556
74,989
One Year
Prior
$ millions
Accounts receivable, net
Net sales
$14,137
90,272
Required:
1. Compute the accounts receivable turnover for (a) Apple and (b) Google for each of the two most recent years using the data shown.
2. Compute how many days, on average, it takes to collect receivables for the two most recent years for (a) Apple and (b) Google.
3. Which company more quickly collects its accounts receivable in the current year?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,443,630, beginning accounts receivable balance of $588,900, and an
ending accounts receivable balance of $624,450.
A. Compute the accounts receivable turnover ratio and the number of days' sales in receivables ratio for 2018. Round answers to two decimal
places.
times
days
B. What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of day's sales ratio is
180 days?
Accounts receivable turnover ratio
Sales in receivables ratio
a. Millennial Manufacturing collects its accounts more quickly than its competitors.
b. A lender may favour Millennial Manufacturing over its competitors because of its faster collection period.
c. Without prior years' data it is hard to tell if Millennial Manufacturing is really more efficient than its competitors.
d. All of the above statements may be correct.
Chapter 7 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Accounts receivable subsidiary ledger; schedule of...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Percent of accounts receivable method P2 At each...Ch. 7 - Aging of receivables method P2 Daley Company...Ch. 7 - Percent of receivables method P2 Refer to the...Ch. 7 - Writing off receivables P2 Refer to the...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Notes receivable transactions P3 Refer to the...Ch. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Sales on account and credit card sales C1 Mayfair...Ch. 7 - Estimating and reporting bad debts P2 At December...Ch. 7 - Aging accounts receivable and accounting for bad...Ch. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Santana Rey, owner of Business Solutions, realizes...Ch. 7 - Comparative figures for Apple and Google follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - As the accountant for Pure-Air Distributing, you...Ch. 7 - Access eBays February 6, 2015, filing of its 10-K...Ch. 7 - Prob. 7BTNCh. 7 - Prob. 9BTN
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