A Recent Annual Report for Kirova Company Contained the Following

Essay

A recent annual report for Kirova Company contained the following data: $$\begin{array} { l r r } &{ \text { (in millions) } } \\& \underline { 2014 } & \underline { 2013 } \\\text { Accounts receivable } & \$ 2,023 & \$ 1,866 \\\text { Less: Allowance for doubtful accounts } & 50 & 52 \\\text { Net accounts receivable } & 1,976 & 1,814 \\\text { Net sales (all are on credit) } & 18,158 &\end{array}$$ Required:
A. Calculate the accounts receivable turnover ratio.
B. Calculate the average days' sales in receivables for 2014 (rounded to the nearest day).
C. Explain the meaning of each number.