Presented here is selected information for Nike, Inc. (in U.S. $ millions) and Adidas AG (in euro millions):
|
|
Nike |
|
Adidas |
|
| Net sales |
|
$24,128 |
|
€13,344 |
|
| Allowance for doubtful accounts, beginning of year |
|
74 |
|
127 |
|
| Allowance for doubtful accounts, end of year |
|
50 |
|
151 |
|
| Accounts receivable (gross), beginning of year |
|
3,212 |
|
1,794 |
|
| Accounts receivable (gross), end of year |
|
3,330 |
|
1,858 |
|
(a) Calculate the receivables turnover and average collection period for both companies. The industry average for the receivables turnover was 7.5 times and the average collection period was 49 days. (Round receivables turnover to 1 decimal place, e.g. 5.2. Round average collection period to nearest whole day, e.g. 15.)
|
|
Nike
(in U.S. $ millions) |
|
|
Adidas AG
(in euro millions) |
|
| Receivables turnover |
|
|
times |
|
|
times |
| Average collection period |
|
|
days |
|
|
days |
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