The following geographic data includes net product sales summarized on the basis

Question

The following geographic data includes net product sales summarized on the basis of the customer location and long-lived assets based on their location:

Calculate the accounts receivable turnover and average collection period for 2011. (Use “Net Product Sales.” Assume all sales were credit sales.) (Round answers to 1 decimal place, e.g. 15.2.)

2011 2010 2009 Net product sales: United states $487,185 $471,714 $455,517 Foreign 41,184 45,435 40,075 $528,369 $517,149 $495,592 Long-lived assets: United states $170,173 $172,087 $176,044 Foreign 41,989 43,405 44,677 $212,162 $215,492 $220,721

Explanation / Answer

accounts receivable turnover =$528,369/212,162+215,492)/2=528,369/213827=2.47 times.

average collection period for 2011=212,162+215,492)/2/$528,369/365=213,827/528,369/365=147.7 days

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