Presented Here Is Basic Financial Information (In Millions) from the Annual

question 150

Essay

Presented here is basic financial information (in millions) from the annual reports of Nike and Adidas. Instructions
Calculate the accounts receivable turnover and average collection period for both companies. Comment on the difference in their collection experiences.

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions involving long-term liabilities and equity, including issuing debt, repurchasing shares, and paying dividends, as part of a company's fund-raising activities.

Not Affecting Cash

Transactions or events that do not result in actual cash flow in or out of a company but may still impact the financial statements.

Payments to Suppliers

Amounts of money paid by a company to its suppliers for goods or services received.