Compute accounts receivable turnover for the current year

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Reference no: EM13537779

Key information from Nokia, which is a leading global manufacturer of mobile devices and services, follows.

EUR millions

Current Year

Prior Year

Accounts receivable, net* 

7,981

9,444

Sales

40,984

50,710

1. Compute the accounts receivable turnover for the current year.

2. How long does it take on average for Nokia to collect receivables?

3. Refer to BTN 9-2. How does Nokia compare to Research In Motion and Apple in terms of its accounts receivable turnover and its collection period?

4. Nokia reports an aging analysis of its receivables, based on due dates, as follows (in EUR millions) as of December 31, 2009. Compute the percent of receivables in each category.

EUR millions

Total Receivables

Current

7,302

Past due 1-30 days

393

Past due 31-180 days

170

More than 180 days

116

Reference no: EM13537779

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