Question
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2015 financial statements contain the following information (in millions): 2015 2014
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2015 financial statements contain the following information (in millions):
2015 | 2014 | ||||||
Balance sheets: | |||||||
Accounts receivable, net | $ | 3,358 | $ | 3,434 | |||
Income statements: | |||||||
Sales revenue | $ | 30,601 | $ | 27,799 | |||
A note disclosed that the allowance for uncollectible accounts had a balance of $78 million and $78 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $20 million. Assume that all sales are made on a credit basis.
Required: 1. What is the amount of gross (total) accounts receivable due from customers at the end of 2015 and 2014?
2. What is the amount of bad debt write-offs during 2015?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2015.
4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2015.
Please help me with #4.
2015 $ 3,436 2014 $ 3,512 Accounts receivable, gross Bad debt write- offs $ 20 Beg. bal. Sales Gross Accounts Receivable 3,512 30,601 20 30,657 3,436 Write-offs Collections End. bal. Net Accounts Receivable Beginning net accounts $ 3,434 receivable Sales 30,601 Write-offs (20) Cash collected from customers (30,657) Ending net accounts receivable $ 3,358Step by Step Solution
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