Accounts receivable turnover for Apple and Google for each of the two most recent years

Question

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Answer 1

Question

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

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Answer 2

Question

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

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Answer 3

Question

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

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Answer 4

Question

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

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Answer 5

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

Answer 6

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Answer 7

Chapter 9, Problem 2BTN

Requirement-1:

To determine

To calculate: Accounts receivable turnover for Apple and Google for each of the two most recent years

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 2BTN

Solution: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation: Accounts receivable turnover for Apple and Google for each of the two most recent years is calculated as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54

Answer 13

Conclusion

Conclusion: Accounts receivable turnover for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Accounts Receivable Turnover	14.22	19.20	7.14	7.54

Answer 14

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Answer 15

Requirement-2:

To determine

To calculate: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years and explanation for the difference in ratios

Answer 16

Requirement-2:

Expert Solution

Answer to Problem 2BTN

Solution: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is as follows:

	Apple		Google
	Current Year	One year Prior	Current Year	One year Prior
Collection period (days)	26	19	51	48

The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Answer 17

Requirement-2:

Expert Solution

Answer 18

Requirement-2:

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Explanation: Average collection period or days sales in receivable for Apple and Google for each of the two most recent years is explained as follows:

	Apple		Google
($ millions)	Current Year	One year Prior	Current Year	One year Prior
Net Sales (A)	$170,910	$156,508	$ 59,825	$ 50,175
Beginning Accounts Receivable (B)	$ 10,930	$ 5,369	$ 7,885	$ 5,427
Ending Accounts Receivable (C)	$ 13,102	$ 10,930	$ 8,882	$ 7,885
Average Accounts Receivable (D) =(B+C)/2 =	$ 12,016	$ 8,150	$ 8,384	$ 6,656
Accounts Receivable Turnover (E) = A/D =	14.22	19.20	7.14	7.54
Collection period (days)= 365/E =	26	19	51	48

Answer 21

Conclusion

Conclusion: The difference in the ratios of two companies is due to difference in amount of sales receivable as compared with the sales.

Answer 22

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.

Conclusion

Conclusion: Hence, Apple Company is more efficient in collecting its accounts receivable

Answer 23

Requirement-3:

To determine

To indicate: the Company more efficient in collecting its accounts receivable

Answer 24

Requirement-3:

Expert Solution

Answer to Problem 2BTN

Solution: Apple Company is more efficient in collecting its accounts receivable

Answer 25

Requirement-3:

Expert Solution

Answer 26

Requirement-3:

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

Explanation: Apple Company is more efficient in collecting its accounts receivable because it has lower collection period or says its sales remain uncollected for lesser number of days as compared with Google.