Accounts Receivable and Inventory Turnover The following data (in millions) were adapted from recent financial statements of Apple Inc (AAPL).   Year 2 Year 1 Sales $233,715 $182,795 Cost of goods sold 140,089 112,258 Operating income 71,230 52,503 Average accounts receivable 33,713 27,816 Average inventory 2,230 1,938   1.  Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place.   Accounts Receivable Turnover Year 2 fill in the blank  Year 1 fill in the blank    2.  Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day. Number of Days' Sales in Receivables Year 2 ___________ days  Year 1 ___________ days    3.  Compute the inventory turnover for Years 1 and 2. Round to one decimal place. Inventory Turnover Year 2 fill in the blank  Year 1 fill in the blank    4.  Compute the number of days' sales in inventory for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day.   Number of Days' Sales in Inventory Year 2 ___________ days  Year 1 ___________ days    5. Compute the return on sales for Years 1 and 2. Round to one decimal place. Return on Sales Year 2 ___________ %  Year 1 ___________ %   6.  Apple’s accounts receivable turnover in Year 2 has (decreased or increased) slightly. Days’ sales in receivables has (decreased or increased). This is a (favorable or unfavorable)  change. Apple’s inventory turnover in Year 2 has (decreased or increased) slightly. Days’ sales in inventory has (stayed the same or increased) . Apple’s return on sales in Year 2 has (decreased or increased). This a  (favorable or unfavorable) change.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Accounts Receivable and Inventory Turnover

The following data (in millions) were adapted from recent financial statements of Apple Inc (AAPL).

  Year 2 Year 1
Sales $233,715 $182,795
Cost of goods sold 140,089 112,258
Operating income 71,230 52,503
Average accounts receivable 33,713 27,816
Average inventory 2,230 1,938

 

1.  Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place.

 

Accounts Receivable Turnover
Year 2 fill in the blank 
Year 1 fill in the blank 

 

2.  Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day.

Number of Days' Sales
in Receivables
Year 2 ___________ days 
Year 1 ___________ days 

 

3.  Compute the inventory turnover for Years 1 and 2. Round to one decimal place.

Inventory Turnover
Year 2 fill in the blank 
Year 1 fill in the blank 

 

4.  Compute the number of days' sales in inventory for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day.

 

Number of Days' Sales
in Inventory
Year 2 ___________ days 
Year 1 ___________ days 

 

5. Compute the return on sales for Years 1 and 2. Round to one decimal place.

Return on Sales
Year 2 ___________ % 
Year 1 ___________ %

 

6.  Apple’s accounts receivable turnover in Year 2 has (decreased or increased) slightly. Days’ sales in receivables has (decreased or increased). This is a (favorable or unfavorable)  change. Apple’s inventory turnover in Year 2 has (decreased or increased) slightly. Days’ sales in inventory has (stayed the same or increased) . Apple’s return on sales in Year 2 has (decreased or increased). This a  (favorable or unfavorable) change.

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