a. Calculate days sale outstanding (DSO) for 2018 and 2017. Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). DSO for 2018 DSO for 2017 days days b. Determine the total amount that customers owe Lupin each year. Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). Amount owed in 2018 $ Amount owed in 2017 $ Amount owed in 2016 $ c. What proportion of trade receivables is doubtful each year? Note: Round percentage (your final answer) to two decimal places (for example, enter 0.65% for 0.6555%). 2018: Proportion of AR that is doubtful 2017: Proportion of AR that is doubtful 2016: Proportion of AR that is doubtful

a. Calculate days sale outstanding (DSO) for 2018 and 2017. Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). DSO for 2018 DSO for 2017 days days b. Determine the total amount that customers owe Lupin each year. Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). Amount owed in 2018 $ Amount owed in 2017 $ Amount owed in 2016 $ c. What proportion of trade receivables is doubtful each year? Note: Round percentage (your final answer) to two decimal places (for example, enter 0.65% for 0.6555%). 2018: Proportion of AR that is doubtful 2017: Proportion of AR that is doubtful 2016: Proportion of AR that is doubtful

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Analyzing Accounts Receivable
Lupin Pharmaceuticals, an Indian transnational pharmaceutical company, develops and markets a wide portfolio of branded and generic products. The company reported the following in its 2018 annual report.
INR millions
Trade receivables
Less provision for doubtful receivables | 306.9
Trade receivables, net
Total assets
Revenue from operations
Required
2018
2017
2016
$45,961.5 $38,184.8 $40,432.7
318.4
448.2
$45,654.6 $37,865.4 $39,984.5
$140,958 $146,544 $127,375
158,042 174,943 142,555
a. Calculate days sale outstanding (DSO) for 2018 and 2017.
Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555).
DSO for 2018
DSO for 2017
days
clays
b. Determine the total amount that customers owe Lupin each year.
Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555).
Amount owed in 2018 $
Amount owed in 2017 $
Amount owed in 2016 $1
c. What proportion of trade receivables is doubtful each year?
Note: Round percentage (your final answer) to two decimal places (for example, enter 0.66% for 0.6555%).
2018: Proportion of AR that is doubtful
2017: Proportion of AR that is doubtful
%
%
2016: Proportion of AR that is doubtful
%

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