Problem
Suppose the amounts presented here are basic financial information (in millions) from the 2017 annual reports of Nike and adidas.
|
Nike
|
adidas
|
|
Sales revenue
|
$21,049
|
$11,187
|
|
Allowance for doubtful accounts, beginning
|
77.7
|
114
|
|
Allowance for doubtful accounts, ending
|
120
|
112
|
|
Accounts receivable balance (gross), beginning
|
2,666
|
1,671
|
|
Accounts receivable balance (gross), ending
|
2,777.0
|
1,473
|
Calculate the accounts receivable turnover for both companies.
Calculate the average collection period for both companies.