Apple Computer Inc. designs, manufactures, and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Substantially all of the company€™s net sales over the last five years are from sales of its Apple Macintosh line of personal computers and related software and peripherals. For the fiscal years ending September 25, 2004 and September 27, 2003, Apple reported the following (in millions):

Assume that the accounts receivable (in millions) were $565 at the beginning of the 2003 fiscal year.
1. Compute the accounts receivable turnover for 2004 and 2003. Round to one decimal place.
2. Compute the days€™ sales in receivables at the end of 2004 and 2003.
3. What conclusions can be drawn from (1) and (2) regarding Apple€™s efficiency in collecting receivables?
4. Using the Internet, access the Apple September 25, 2004, 10-K filing with the Securities and Exchange Commission. You can use the PricewaterhouseCoopers Web site at edgarscan.pwcglobal.com to search for company filings by name. Search the 10-K filing for the term €œreceivable.€ Identify one company that had accounts receivable with Apple at the end of fiscal years 2004 and2003.

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Year Ending Sept. 25, 2004 $8,279 Sept 27, 2003 $6,207 Net sales Accounts receivable at end of year 774 766