Comparative figures for Research In Motion and Apple follow.
| |
Research In Motion
|
Apple
|
|
($ millions)
|
Current
Year
|
One
Year
Prior
|
Two
Years
Prior
|
Current
Year
|
One
Year
Prior
|
Two
Years
Prior
|
|
Accounts
|
|
|
|
|
|
|
|
receivable, net
|
$2,594
|
$2,112
|
$1,175
|
$3,361
|
$2,422
|
$1,637
|
|
Net sales
|
14,953
|
11,065
|
6,009
|
42,905
|
37,491
|
24,578
|
Required
1. Compute the accounts receivable turnover for Research In Motion and Apple for each of the two most recent years using the data shown.
2. Using results from part 1, compute how many days it takes each company, on average, to collect receivables. Compare the collection periods for RIM and Apple, and suggest at least one explanation for the difference.
3. Which company is more efficient in collecting its accounts receivable? Explain.