Raytheon Company disclosed the following data related to segment sales and operating profits for fis- cal 2018. Total Net Sales Operating Income $ millions 2018 2017 2016 2018 2017 2016 $ 6,180 6,722 $ 5,804 6,177 $ 5,529 $971 Integrated defense systems Intelligence, information and services Missile systems .. Space and airborne systems Forcepoint. $1,023 $ 935 538 455 467 6,169 7,096 6,182 8,298 7,787 973 1,010 921 6,748 6,430 884 862 808 634 608 586 33 90 Eliminations (1,514) (1,423) (1,361) Total net sales $27,068 $25,383 $24,201 The company also reported the following on its balance sheet. $ millions 2018 2017 Receivables, net of allowance for doubtful accounts of $12 and $8. $1,648 $1,324 ......

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Raytheon Company disclosed the following data related to segment sales and operating profits for fis-
cal 2018.
Total Net Sales
Operating Income
$ millions
2018
2017
2016
2018
2017
2016
Integrated defense systems..
Intelligence, information and services
Missile systems ..
Space and airborne systems
Forcepoint.
$ 6,180
6,722
$ 5,804
6,177
$ 5,529
$1,023 $ 935
$971
538
6,169
7,096
6,182
455
467
8,298
7,787
6,430
973
1,010
921
6,748
884
862
808
634
608
586
33
90
Eliminations
(1,514)
(1,423)
(1,361)
Total net sales
$27,068
$25,383
$24,201
The company also reported the following on its balance sheet.
$ millions
2018
2017
Receivables, net of allowance for doubtful accounts of $12 and $8. . . .......
$1,648
$1,324
Transcribed Image Text:Raytheon Company disclosed the following data related to segment sales and operating profits for fis- cal 2018. Total Net Sales Operating Income $ millions 2018 2017 2016 2018 2017 2016 Integrated defense systems.. Intelligence, information and services Missile systems .. Space and airborne systems Forcepoint. $ 6,180 6,722 $ 5,804 6,177 $ 5,529 $1,023 $ 935 $971 538 6,169 7,096 6,182 455 467 8,298 7,787 6,430 973 1,010 921 6,748 884 862 808 634 608 586 33 90 Eliminations (1,514) (1,423) (1,361) Total net sales $27,068 $25,383 $24,201 The company also reported the following on its balance sheet. $ millions 2018 2017 Receivables, net of allowance for doubtful accounts of $12 and $8. . . ....... $1,648 $1,324
c. Which segment's sales grew the most in 2018? How does this compare to 2017 sales growth?
d. Calculate the company's accounts receivable turnover and its days sales outstanding (DSO) for 2018.
Does this seem reasonable? What might explain the DSO?
e. Assess the size of the receivables allowance. Does it seem reasonable?
Transcribed Image Text:c. Which segment's sales grew the most in 2018? How does this compare to 2017 sales growth? d. Calculate the company's accounts receivable turnover and its days sales outstanding (DSO) for 2018. Does this seem reasonable? What might explain the DSO? e. Assess the size of the receivables allowance. Does it seem reasonable?
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