NETGEAR 10-K Annual Report:

http://d18rn0p25nwr6d.cloudfront.net/CIK-0001122904/e0037f25-ca9c-469a-bf67-bc3ec993885f.pdf

#2	3 pts	What is the exact name of the line NETGEAR uses to describe the amount customers owe NETGEAR or, more precisely, the amount NETGEAR expects to collect from customers who owe? As of the end of the most recent fiscal year, how much money does NETGEAR expect to receive in the future from customers for products and services sold to them in the past? In accounting language, net means after subtracting something. What is being subtracted from NETGEARs Accounts Receivable?	________________________ Use all the zeros in your answer. Do not type the dollar sign or commas. $ ________________________ Interest Freight Accumulated Depreciation Allowance for Doubtful Accounts
#3	5 pts	Calculate NETGEARs Accounts Receivable Turnover and Days Sales in Receivables for the two most recent years. Note: Use net receivables in your calculations. Receivables, net on December 31, 2015 were $290,642,000. (You will need this to calculate Average Accounts Receivable for 2016.) Note: The denominator of this formula uses AVERAGE Accounts Receivable. Because this is a balance sheet account, you find the average by adding the end-of-year amount to the beginning-of-year amount, and dividing by 2. For any balance sheet account, the beginning-of-year amount is the same as the end-of-year amount from the previous year. Hint: Remember, the first three items on an income statement for a manufacturing company or retailer are Sales Cost of Goods Sold = Gross Profit (even if the company uses different names for those accounts). How many days, on average in the year ended Dec. 31, 2017, did it take NETGEAR to collect from customers?	Round each answer to one decimal place. Accounts Receivable Turnover: For the year ended Dec. 31, 2017 ________ For the year ended Dec. 31, 2016 ________ Days Sales in Receivables: For the year ended Dec. 31, 2017 ________ For the year ended Dec. 31, 2016 ________ _______ days
#4	2 pts	Based on the ratios in the previous question, assuming NETGEAR typically offers terms of 2/10, n/30 to its customers who purchase on account, which statement best helps explain NETGEARs Accounts Receivable ratios?	The average number of days it took NETGEAR to collect from customers is quite high, as compared to its credit terms. NETGEAR needs to speed up its collections (collect from customers more quickly). The average number of days it took NETGEAR to collect from customers seems quite low, as compared to its credit terms. NETGEAR improved its collections in the most recent year, as compared to the previous year. NETGEARs collections worsened in the most recent year, as compared to the previous year. A and B are true. A, B, and D are true. A, B, and E are true. B, C, and D are true. B, C, and E are true. C and D are true. C and E are true.
#5	3 pts	Calculate Netgears Return on Sales (also called Operating Profit Margin) for each of the two most recent years. Because the Return on Sales metric takes into account sales and operating expenses, it is considered a good measure of management effectiveness. Based on the Return on Sales profitability metric, did Netgears management effectiveness improve or decline in 2017 as compared to 2016?	Round to one decimal place (9.3%, for example). Return on Sales: For the year ended Dec. 31, 2017 ______ % For the year ended Dec. 31, 2016 ______ % Based on this metric, Netgears management effectiveness ______________ (improved or declined) in 2017 as compared to 2016.