The financial statements included in the 2015 Form 10-K of Nike reported the following amounts (in millions

Question:

The financial statements included in the 2015 Form 10-K of Nike reported the following amounts (in millions of dollars):

Revenues, for the year ended May 31, 2015 .................... $30,601

Accounts receivable, net, May 31, 2015 ........................... 3,358

Accounts receivable, net, May 31, 2014 ........................... 3,434

Required

1. Compute Nike's accounts receivable turnover ratio for the year ended May 31, 2015.

(Assume that all sales are on credit.)

2. What is the average collection period in days for an account receivable? Explain your answer.

3. Give some examples of the types of customers you would expect Nike to have. Do you think the average collection period for sales to these customers is reasonable? What other information do you need to fully answer that question?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...