Global Decision C1 A1 BTN 7-9 Key information from Samsung (Samsung.com), which
ID: 2404181 • Letter: G
Question
Global Decision C1 A1 BTN 7-9 Key information from Samsung (Samsung.com), which is a leading manufacturer of consumer Samsung electronic products, follows. APPLE GOOGLE Current Year One Year Prior Two Years Prior W in millions Accounts receivable, netW 25,168,026 W 24,694,610 W 24,988,532 Sales 200,653,482 206,205,987 228,692,667 Samsung refers to this as "Trade receivables, net" in its footnotes. 1. Compute its accounts receivable turnover for the current year. 2. How long does it take on average for Samsung to collect receivables? 3. Refer to BTN 7-2. How does Samsung compare to Apple and Google in terms of its accounts receivable turnover and its collection period?Explanation / Answer
(A) Current Year Accounts Receivables
(B) Previous Year Accounts Receivables
C=((A+B)/2)Average Accounts Receivables
(D) Sales Current year
E=(D/C) Accounts Turnover ratio
No of Days in an Year
F= (A/(D/365))No of days to collect Receivables
Samsung
? 25,168,026.00
? 24,694,610.00
? 24,931,318.00
? 200,653,482.00
8.05
365
45.78
Days
Apple
$ 16,849.00
$ 17,460.00
$ 17,154.50
$ 233,715.00
13.62
365
26.31
Days
$ 11,556.00
$ 9,383.00
$ 10,469.50
$ 74,989.00
7.16
365
56.25
Days
Part 1
Accounts receivables Turnover for Current year = 8.05 Times
Part 2
Samsung Takes approx 46 days to Collect Receivables.
Part 3
Samsungs Accounts receivables turnover ratio is better than Google But not as good as Apple. The Number of days to collect Receivables of Samsung better than Google but lower than Apple.
(A) Current Year Accounts Receivables
(B) Previous Year Accounts Receivables
C=((A+B)/2)Average Accounts Receivables
(D) Sales Current year
E=(D/C) Accounts Turnover ratio
No of Days in an Year
F= (A/(D/365))No of days to collect Receivables
Samsung
? 25,168,026.00
? 24,694,610.00
? 24,931,318.00
? 200,653,482.00
8.05
365
45.78
Days
Apple
$ 16,849.00
$ 17,460.00
$ 17,154.50
$ 233,715.00
13.62
365
26.31
Days
$ 11,556.00
$ 9,383.00
$ 10,469.50
$ 74,989.00
7.16
365
56.25
Days
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