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Presented here is the basic financial information from the 2009 annual reports of Intel and Advanced Micro Devces (AMD), the two primary manufacturers of silicon chips for personal computers.
(in millions)
Intel
AMD
Sales
$35,127
$5,403
Allowance for doubtful accounts, Jan 1
17
8
Allowance for doubtful accounts, Dec 31
19
7
Accounts receivable balance (gross), Jan 1
1,729
328
Accounts receivable balance (gross) Jan 31
2,292
752
Instructions
Calculate the receivable turnover ratio and average collection period for both companies.
metods of absorption of manufecturing overhead
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