A recent annual report for Adobe Incorporated contained the following data: (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: Numerator Denominator 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Numerator Denominator Current Year $ 1,594,459 8,750 $ 1,585,709 $ 11,191, 297 Receivables Turnover Ratio Net sales Average net trade accounts receivable Average Days Sales in Receivables 365 Receivables turnover Previous Year $ 1,380,559 13,681 $1,366,878 $ 11,191,297 $ 1,366,878 8.19 times 0 days
A recent annual report for Adobe Incorporated contained the following data: (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: Numerator Denominator 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Numerator Denominator Current Year $ 1,594,459 8,750 $ 1,585,709 $ 11,191, 297 Receivables Turnover Ratio Net sales Average net trade accounts receivable Average Days Sales in Receivables 365 Receivables turnover Previous Year $ 1,380,559 13,681 $1,366,878 $ 11,191,297 $ 1,366,878 8.19 times 0 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A recent annual report for Adobe Incorporated contained the following data:
(dollars in thousands)
Current Year
$ 1,594,459
8,750
$ 1,585,709
$ 11,191, 297
Accounts receivable
Less: Allowances
Net accounts receivable
Net sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
Note: Use 365 days a year. Enter your answers in thousands not in dollars.
Numerator
Denominator
Numerator
Denominator
Receivables Turnover Ratio
Net sales
Average net trade accounts receivable
Average Days Sales in Receivables
365
Previous Year
$ 1,380,559
13,681
$ 1,366,878
Receivables turnover
$ 11,191,297
$
1,366,878
||
11
8.19 times
0 days
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