Question

1. Calculate the Accounts Receivable Turnover for Apple for the most recent year, then describe how you located the information and performed your calculation. 2. Calculate the Accounts Receivable Turnover for Microsoft for the most recent year, then describe how you located the information and performed your calculation.

Answer 1

Accounts receivable turnover = Turnover / Average accounts receivable

Average accounts receivable = (Opening accounts receivable + Closing accounts receivable ) / 2

Accounts receivable turnover for Apple

We can find turnover for Apple in the Consolidated Statements of Operations as "Total Net Sales". For average accounts receivable, figures can be found in Consolidated Balance Sheets.

Average accounts receivable = ( Balance on 28 September, 2019 + Balance on 29 September, 2018 ) / 2 = ( $22,926 millions + $23,186 millions ) / 2 = $23,056 millions

Total Net sales = $260,174 millions

Accounts receivable turnover = $260,174 millions / $23,056 millions = 11.28 times.

Accounts receivable turnover for Microsoft

We can find turnover for Microsoft in the Income Statement as "Total Revenue". For average accounts receivable, figures can be found in Balance Sheets.

Average accounts receivable = ( Balance on 2019 + Balance 2018 ) / 2 = ( $29,524 millions + $26,481 millions ) / 2 = $28,002.5 millions

Total Revenue = $125,843 millions

Accounts receivable turnover = $125,843 millions / $28,002.5 millions = 4.49 times.