Evaluate turnover ratio and average collection period

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Reference no: EM13532916

Presented here is basic financial information (in millions) from the 2009 annual reports of Nike and Adidas.


Nike

Adidas

Sales

$19,176.1

$10,381

Allowance for doubtful accounts, beginning

78.4

119

Allowance for doubtful accounts, ending

110.8

124

Accounts receivable balance (gross), beginning

2,873.7

1,743

Accounts receivable balance (gross), ending

2,994.7

1,553

Instructions

Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences.

Reference no: EM13532916

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