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Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Nike and adidas.

	Nike	adidas
Sales revenue	$20,622.5	$11,242
Allowance for doubtful accounts, beginning	79.1	112
Allowance for doubtful accounts, ending	109.2	136
Accounts receivable balance (gross), beginning	2,886.6	1,760
Accounts receivable balance (gross), ending	2,951.7	1,568

Calculate the accounts receivable turnover for both companies. (Round answers to 1 decimal place, e.g. 12.5.)

		Nike			adidas
Accounts receivable turnover			times			times

Calculate the average collection period for both companies. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

		Nike			adidas
Average collection period			days			day

pur-new-sol

Average account receivable for Nike = (2886.6-79.1)+(2951.7-109.2)/2 = 2825

Average account receivable for Adidas = (1760-112)+(1568-136)/2 = 1540

Receivable turnover for Nike = 20622.5/2825 = 7.3 Times

Receivable turnover for Adidas = 11242/1540 = 7.3Times

Average collection period = 365/Receivable turnover

	Nike	Adidas
Average collection period	365/7.3 = 50 Days	365/7.3 = 50 Days

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