A Recent Annual Report for Kirova Company Contained the Following

question 89

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.

---

Definitions:

Personal Unconscious

A term used in psychology, particularly in theories by Carl Jung, to describe a layer of the unconscious mind consisting uniquely of an individual's suppressed memories and thoughts.

Fixations

In psychology, persistent focus or attachment to an object or idea, often at the expense of broader perspectives.

Mandalas

Geometric configurations of symbols often used in Hindu and Buddhist rituals and as a spiritual symbol representing the universe.

Birth Order

The order in which a child is born in their family, which can influence their personality, behavior, and other aspects of their life.