The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Question

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Answer 1

Question

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

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Answer 2

Question

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

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Answer 3

Question

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

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Answer 4

Question

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

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Answer 5

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

Answer 6

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

Answer 7

Chapter 9, Problem 2AA

Requirement-1:

To determine

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 2AA

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Accounts Receivable Turnover Ratio	13.63	13.23	6.83	7.03

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The Accounts receivable turnover ratio for Apple and Google for the two most recent years is explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03

Answer 13

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

Answer 14

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-2:

To calculate:

Number of days it takes to collect receivable for Apple and Google for the two most recent years:

Answer 15

Expert Solution

Answer to Problem 2AA

Number of days it takes to collect receivable for Apple and Google for the two most recent years are as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Days Sales Uncollected	26.77	27.59	53.46	51.94

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the two most recent years are explained as follows:

	Apple		Google
$ Millions	Current Year	One Year Prior	Current Year	One Year Prior
Net Credit Sales (A)	$ 229,234	$ 215,639	$ 110,855	$ 90,272
Beginning Accounts Receivable (B)	$ 15,754	$ 16,849	$ 14,137	$ 11,556
Ending Accounts Receivable (C)	$ 17,874	$ 15,754	$ 18,336	$ 14,137
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,302	$ 16,237	$ 12,847
Accounts Receivable Turnover Ratio (E) = A/D	13.63	13.23	6.83	7.03
Days Sales Uncollected (365/E)	26.77	27.59	53.46	51.94

Answer 20

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

Answer 21

To determine

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:
Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales uncollected:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
Days Sales uncollected = Accounts Receivable * 365Net Sales

Requirement-3:

To Identify:

The company which collects its receivables more early in the current year

Answer 22

Expert Solution

Answer to Problem 2AA

Apple collects its receivables more early in the current year.

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Number of days it takes to collect receivable for Apple and Google for the current years is as follows:

	Apple	Google
$ Millions	Current Year	Current Year
Net Credit Sales (A)	$ 229,234	$ 110,855
Beginning Accounts Receivable (B)	$ 15,754	$ 14,137
Ending Accounts Receivable (C)	$ 17,874	$ 18,336
Average Accounts Receivable (D) = (B+C)/2	$ 16,814	$ 16,237
Accounts Receivable Turnover Ratio (E) = A/D	13.63	6.83
Days Sales Uncollected (365/E)	26.77	53.46

The Days Sales Uncollected are lower for Apple, hence it can be said that Apple collects its receivables more early in the current year.

Answer 27

Ch. 9 - Prob. 1DQ Ch. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQ Ch. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQ Ch. 9 - Prob. 6DQ Ch. 9 - J Refer to the financial statements and notes of...Ch. 9 - GOOGLE 8. Q Refer to the balance sheet of Google...Ch. 9 - Prob. 9DQ Ch. 9 - Prob. 10DQ

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Videos

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Answer to Problem 2AA

Explanation of Solution

Answer to Problem 2AA

Explanation of Solution

Answer to Problem 2AA

Explanation of Solution

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Chapter 9 Solutions

The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Videos

To calculate: The Accounts receivable turnover ratio for Apple and Google for the two most recent years:

Answer to Problem 2AA

Explanation of Solution

Answer to Problem 2AA

Explanation of Solution

Answer to Problem 2AA

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions

To calculate:

The Accounts receivable turnover ratio for Apple and Google for the two most recent years: