Apple Inc. designs, manufactures, and markets personal computers and related personalcomputing and communicating solutions for sale primarily to education, creative, consumer,and business customers. Substantially all of the company's sales over the last five yearsare from sales of its Macs, iPods, iPads, and related software and peripherals. For tworecent fiscal years, Apple reported the following (in millions):Year 2Year 1Sales$233,715$182,795Accounts receivable at end of year35,88931,537Assume that the accounts receivable (in millions) were $24,094 at the beginning offiscal Year 1.1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimalplaces.2. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 daysand round to one decimal place.What conclusions can be drawn from (1) and (2) regarding Apple's efficiency3.in collecting receivables?

Accounts receivable turnoverAccounts receivable turnover is a liquidity measure of accounts…

Answered: Apple Inc. designs, manufactures, and…

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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