A recent annual report for Kirova Company contained the following data:
$$\begin{array} { l r r }
&&{ \text { (in millions) } } \
& \underline { 2011 } & \underline { 2010 } \
\text { Accounts receivable }& \$ 2,023 & \$ 1,866 \
\text { Less: Allowance for Doubtful Accounts } & 50 & 52 \
\text { Net accounts receivable } & 1,973 & 1,814\
\text { Net sales (assume all are on credit) } &18.158
\end{array}$$ Requirements:
A.Calculate the accounts receivable turnover ratio and average days' sales in receivables for 2011.
B.Explain the meaning of each number.

Question

A recent annual report for Kirova Company contained the following data:
 $$\begin{array} { l r r } 
&&{ \text { (in millions) } } \
 & \underline { 2011 } & \underline { 2010 } \
\text { Accounts receivable }& \$ 2,023 & \$ 1,866 \
\text { Less: Allowance for Doubtful Accounts } & 50 & 52 \
\text { Net accounts receivable } & 1,973 & 1,814\
\text { Net sales (assume all are on credit) } &18.158
\end{array}$$ Requirements:
A.Calculate the accounts receivable turnover ratio and average days' sales in receivables for 2011.
B.Explain the meaning of each number.

A Recent Annual Report for Kirova Company Contained the Following