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Performing Ratio Analysis of Receivables and Interpreting the Results Mikey Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. Armer Inc. develops, markets, and distributes branded performance apparel, footwear, and accessories. The following financial information is reported by both companies. Note: Year 3 is the most recent year. $ millions Mikey Inc. Armer Inc. Accounts Accounts Accounts Receivable Receivable Year 2 Year 3 $5.833.8 $3.358.0 332.3 737.1 Receivable Sales Sales Year 1 Year 3 Year 2 $6,441.3 $61.514.4 $52.021.7 446.9 7.926.6 5.243.5 Required a. Compute the accounts receivable turnover ratio and the average days to collect receivables for Year Three and for Year Two for both Mikey Inc. and Armer Inc. Ratio Mikey-Year 3 Accounts receivable turnover Mikey-Year 2 Accounts receivable turnover Under Armer-Year 3 Accounts receivable turnover Under Armer - Year 2 Accounts receivable turnover Mikey-Year 3 Average days to collect receivables Mikey-Year 2 Average days to collect receivables Under Armer - Year 3 Average days to collect receivables Under Armer - Year 2 Average days to collect receivables $ $ S $ Numerator Denominator Ox+S 0x+5 0x+ 0x + 365+ 365+ 365✓ + 365✓ + 0 x 0x- 0x- 0x- 0x- 0x- 0x- 0x- Result

Performing Ratio Analysis of Receivables and Interpreting the Results Mikey Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. Armer Inc. develops, markets, and distributes branded performance apparel, footwear, and accessories. The following financial information is reported by both companies. Note: Year 3 is the most recent year. $ millions Mikey Inc. Armer Inc. Accounts Accounts Accounts Receivable Receivable Year 2 Year 3 $5.833.8 $3.358.0 332.3 737.1 Receivable Sales Sales Year 1 Year 3 Year 2 $6,441.3 $61.514.4 $52.021.7 446.9 7.926.6 5.243.5 Required a. Compute the accounts receivable turnover ratio and the average days to collect receivables for Year Three and for Year Two for both Mikey Inc. and Armer Inc. Ratio Mikey-Year 3 Accounts receivable turnover Mikey-Year 2 Accounts receivable turnover Under Armer-Year 3 Accounts receivable turnover Under Armer - Year 2 Accounts receivable turnover Mikey-Year 3 Average days to collect receivables Mikey-Year 2 Average days to collect receivables Under Armer - Year 3 Average days to collect receivables Under Armer - Year 2 Average days to collect receivables $ $ S $ Numerator Denominator Ox+S 0x+5 0x+ 0x + 365+ 365+ 365✓ + 365✓ + 0 x 0x- 0x- 0x- 0x- 0x- 0x- 0x- Result

FINANCIAL ACCOUNTING
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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Performing Ratio Analysis of Receivables and Interpreting the Results Mikey Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. Armer Inc. develops, markets, and distributes branded performance apparel, footwear, and accessories. The following financial information is reported by both companies. Note: Year 3 is the most recent year. Accounts Accounts Receivable Year 3 $5,833.8 737.1 Accounts Receivable Receivable Sales Year 2 Year 3 $6,441.3 $61,514.4 Year 1 $3,358.0 332.3 Mikey - Year 3 Mikey - Year 2 Under Armer - Year 3 Under Armer - Year 2 Mikey - Year 3 Mikey - Year 2 Under Armer - Year 3 Under Armer - Year 2 Sales Year 2 $52,021.7 446.9 7,926.6 5,243.5 $ millions Mikey Inc. Armer Inc. Required a. Compute the accounts receivable turnover ratio and the average days to collect receivables for Year Three and for Year Two for both Mikey Inc. and Armer Inc. Ratio Accounts receivable turnover Accounts receivable turnover Accounts receivable turnover Accounts receivable turnover Average days to collect receivables Average days to collect receivables Average days to collect receivables Average days to collect receivables $ $ A LA LA $ Numerator Denominator 0x + $ 0x = $ 0x + 0x + 365 ✔ + 365 ✔ + 365✓ + 365 ✔ + 0x = 0 x = 0x = 0 x = 0x = 0x = 0 x = 0 x = Result
Transcribed Image Text:Performing Ratio Analysis of Receivables and Interpreting the Results Mikey Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. Armer Inc. develops, markets, and distributes branded performance apparel, footwear, and accessories. The following financial information is reported by both companies. Note: Year 3 is the most recent year. Accounts Accounts Receivable Year 3 $5,833.8 737.1 Accounts Receivable Receivable Sales Year 2 Year 3 $6,441.3 $61,514.4 Year 1 $3,358.0 332.3 Mikey - Year 3 Mikey - Year 2 Under Armer - Year 3 Under Armer - Year 2 Mikey - Year 3 Mikey - Year 2 Under Armer - Year 3 Under Armer - Year 2 Sales Year 2 $52,021.7 446.9 7,926.6 5,243.5 $ millions Mikey Inc. Armer Inc. Required a. Compute the accounts receivable turnover ratio and the average days to collect receivables for Year Three and for Year Two for both Mikey Inc. and Armer Inc. Ratio Accounts receivable turnover Accounts receivable turnover Accounts receivable turnover Accounts receivable turnover Average days to collect receivables Average days to collect receivables Average days to collect receivables Average days to collect receivables $ $ A LA LA $ Numerator Denominator 0x + $ 0x = $ 0x + 0x + 365 ✔ + 365 ✔ + 365✓ + 365 ✔ + 0x = 0 x = 0x = 0 x = 0x = 0x = 0 x = 0 x = Result
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