Question
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2013 financial statements contain the following information (in millions): 2013 2012
Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The companys 2013 financial statements contain the following information (in millions): |
2013 | 2012 | |
Balance sheets: | ||
Accounts receivable, net | $3,997 | $4,012 |
Income statements: | ||
Sales revenue | $27,793 | $25,811 |
A note disclosed that the allowance for uncollectible accounts had a balance of $120 million and $107 million at the end of 2013 and 2012, respectively. Bad debt expense for 2013 was $48 million. Assume that all sales are made on a credit basis. |
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2013 and 2012? (Enter your answers in millions.)
2. What is the amount of bad debt write-offs during 2013?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2013.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started