Question

BTN 8-2 Key comparative figures for Apple and Google follow. COMPARATIVE ANALYSIS A1 Apple Current Year Google Current Year $ millions Prior Year Prior Year APPLE GOOGLE Accounts receivable.. Net sales ... $ 16,849 233,715 $ 17,460 182,795 $11,556 74,989 $ 9,383 66,001 Required Compute days' sales uncollected (rounded to two decimals) for these companies for each of the two years shown. Comment on any trends for the companies. Which company has the largest percent change (rounded to two decimals) in days' sales uncollected?

Answer 1

Days Sales Outstanding Tin & APPLE (050) in 87 Coment Year Previous Year Dso - Acc Receivable | Credit fales ) 365 [Assuming Net Sales as Credit cales] DSO = 16,849 x 365 I DSO = 17,460 x 365 2,33,715 = 34.86 days 26.3 days 182795 Difference is 8.56 days So, 8.56 = 24.55% of DSO 34,86 has been reduced in APPLE when compared to Previous Year.
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GOOGLE [in 7 Tin & Previous year Current year DO 11,556 x 365 74,989 56.25 days Dso = 9 383 x 365 66,001 = 51.89 days So, difference is 4.36 days = 4.36_xloo Slo89 8.4% of Dso has been increased when compared to Previous Year. "So when APPLE is compared to GOOGLE, GOOGLE has the largest percent change in Days Sales Uncollected."