Answered

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Presented is basic financial information (in millions) from the annual reports of Nike Nike Sales revenue $18,627 Allowance for doubtful accounts, Jan. 1 71.5 Allowance for doubtful accounts, Dec. 31 78.4 Accounts receivable balance (gross), Jan 1 2,566.2 Accounts receivable balance (gross), Dec. 31 2,873.7 Instructions: Calculate the average collection period (DAYS) for Nike. Only record the number and round to one decimal.

Sagot :

ayokenny2001

Answer:

See below

Explanation:

Average collection period is computed as

= [Average accounts receivables / Net sales] × 365

Average accounts receivables = [(2,566.2 + 2,873.7)/2] = 2,720

Net sales = 18,627

Average collection period = [2,720/18627] × 365

= 53 days

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