Analyzing the Allowance for Uncollectible Accounts Following is the current asset section from the Ralph Lauren Corporation balance sheet: (in millions) Cash and cash equivalents Short-term investments Accounts receivable, net allowances of $222.2 million and $214.4 million Inventories Income tax receivable Prepaid expenses and other current assets Total current assets Gross receivables % of allowance for uncollectibles to gross A/R March 31, 2018 April 1, 2017 $1,304.6 $668.3 699.4 684.7 421.4 450.2 791.5 79.4 280.4 $2,954.5 Compute the gross amount of accounts receivable for both 2018 and 2017. Compute the percentage of the allowance for uncollectible accounts relative to the gross amount of accounts receivable for each of these years. Round percentages one decimal place (i.e., 0.2538 = 25.4%) 2018 421.4 x million $ 0 x %6 $ 761.3 38.0 323.7 $3,548.4 2017 0 x million 0x

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

7

Analyzing
the Allowance for Uncollectible Accounts
Following is the current asset section from the Ralph Lauren Corporation balance sheet:
(in millions)
Cash and cash equivalents
Short-term investments
Accounts receivable, net allowances of $222.2 million and $214.4 million
Inventories
Income tax receivable
Prepaid expenses and other current assets
Total current assets
Compute the gross amount of accounts receivable for both 2018 and 2017. Compute the percentage of the allowance for uncollectible accounts relative to the gross amount of accounts receivable for each
of these years.
Round percentages one decimal place (i.e., 0.2538 = 25.4%)
2018
421.4 x million $
0 x
%
Gross receivables
% of allowance for uncollectibles to gross A/R
$
Accounts receivable turnover
Average collection period
March 31, 2018 April 1, 2017
$1,304.6
$668.3
699.4
684.7
421.4
450.2
761.3
791.5
38.0
79.4
323.7
280.4
$3,548.4
$2,954.5
0 x times
0 x days
2017
Ralph Lauren reported net sales of $6,182.3 million in 2018. Compute its accounts receivable turnover and average collection period.
Round answers to one decimal place.
0 x million
0 x
%
Transcribed Image Text:Analyzing the Allowance for Uncollectible Accounts Following is the current asset section from the Ralph Lauren Corporation balance sheet: (in millions) Cash and cash equivalents Short-term investments Accounts receivable, net allowances of $222.2 million and $214.4 million Inventories Income tax receivable Prepaid expenses and other current assets Total current assets Compute the gross amount of accounts receivable for both 2018 and 2017. Compute the percentage of the allowance for uncollectible accounts relative to the gross amount of accounts receivable for each of these years. Round percentages one decimal place (i.e., 0.2538 = 25.4%) 2018 421.4 x million $ 0 x % Gross receivables % of allowance for uncollectibles to gross A/R $ Accounts receivable turnover Average collection period March 31, 2018 April 1, 2017 $1,304.6 $668.3 699.4 684.7 421.4 450.2 761.3 791.5 38.0 79.4 323.7 280.4 $3,548.4 $2,954.5 0 x times 0 x days 2017 Ralph Lauren reported net sales of $6,182.3 million in 2018. Compute its accounts receivable turnover and average collection period. Round answers to one decimal place. 0 x million 0 x %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education