Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 21

Accounts receivable turnover and days' sales in receivables
Apple 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 sales over the last five years are from sales of its Macs, iPods, iPads, and related software and peripherals. For two recent fiscal years, Apple reported the following (in millions):

Assume that the accounts receivable (in millions) were $11,560 at the beginning of fiscal Year 1.
1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place.
2. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place.
3. What conclusions can be drawn from (1) and (2) regarding Apple's efficiency in collecting receivables