Question

$ millions Accounts receivable, net Net sales current Year $ 17,874 229, 234 Apple One Year Prior $ 15,754 215,639 Two Years Prior $ 16,849 233,715 Current Year $ 18,336 110,855 Google One Year Prior $14,137 90,272 TWO Years Prior $11,556 74,989 Required: 1. Compute the accounts receivable turnover for (a) Apple and (1) 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 (6) Google. 3. Which company more quickly collects its accounts receivable in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the accounts receivable turnover for (a) Apple and (b) Google for each of the two most recent years using the data shown. (Round your answers to 2 decimal places.) Accounts Receivable Tumover Current Year Prior Year times times timest times a Apple b. Google

Answer 1

Accounts receivable twenover = Net sales Accounts receivable Apple current year = 229,234 . 12.82 times 17,874 One year prior = 215,639 15754 - 13.69 times Google cument year = 110,855 18336 6.05 times One year prior = 90,272 14137 - 6.39 times current year 12.82 times Prior year 13.69 times I 6.05 times I 6.39 timer
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Average collection period =_ 365 receivable thanover Apple current year = 365 - 28-5 days $200 17.82 One year prior 365 - 26 7 days 13.69 - clorent year = 365 - 60.3 days 60S One year prior a 365 - 57.1 days 639 aument year 28.5 days Apple - prior year 267 days Cogle 60.3 days 57. I days ③ in cument year Apple decervate more quickly collects its account