ACCT
Chap008 Solution Manual

# Research in motions accounts receivable for fiscal

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shorter period of time; further, this difference is material. Research In Motion’s accounts receivable for fiscal 2009 represent 44.6% (\$2,593,742 / \$5,812,656) of its current assets and 25.4% (\$2,593,742 / \$10,204,409) of its total assets. Research In Motion’s receivables are historically high because most sales are made on credit. 4. Solution depends on the annual report information obtained. 8-33 Accounts receivable Net sales

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Chapter 08 - Cash and Internal Controls Comparative Analysis — BTN 8-2 Days’ sales uncollected = x 365 Research In Motion (\$ millions) Current Year: \$2,594/\$14,953 x 365 = 63.32 days Prior Year: \$2,112/\$11,065 x 365 = 69.67 days Research In Motion’s days’ sales uncollected has decreased by 6.35 days. The percent decrease is: (63.32 - 69.67) / 69.67 = (9.1)% . Apple (\$ millions) Current Year: \$3,361/\$42,905 x 365 = 28.59 days Prior Year: \$2,422/\$37,491 x 365 = 23.58 days Apple’s days’ sales uncollected has increased by 5.01 days. The percent increase is: (28.59 – 23.58) / 23.58 = 21.2%. Comparative Analysis: Apple’s increase in days’ sales uncollected is 21.2%, which is a marked unfavorable trend compared with Research In Motion’s decrease of 9.1%. That is, Apple has failed to successfully manage the number of days’ sales that are uncollected relative to the prior year. However, it is important to remember that, historically, Apple’s accounts receivable have not been a large asset for this company. 8-34 Accounts receivable Net sales

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