ACC201 Week 4 Discussion 1 Analyzing the Accounts Receivable of DNKN and GE

Hello Class,

Compute the accounts receivable as a percentage of revenue for each company showing your computations. 

After looking over Dunkin Donuts’ 10-k annual report I found that the total revenues in 2018 was $1321,617 (in millions). The net accounts receivable was $75,963(millions). When you divide the accounts receivable 75,963 by the total revenue 1321,617 it came out to be 17.398. 17.398 was multiplied by 100  to get 5.747 which rounded to 5.75%.

After looking over General Electric’s 10-K (in millions) the current receivables amounted to $19,864 and the Total revenues  was $121,615. When you divide $19874 by $121,615 it comes out to .1634. Multiply .1634 by 100 and you will get 16.34%.

Explain which company appears to be making more of its sales on account.

Based on the sales General Electric is making more money than Dunkin Donuts.

Determine why one of these companies is making more of its sales on account than the other.

I believe General Electric is making more than Dunkin Donuts because the cost of the products is much more ending in the product having a higher selling price. General Electric produces many of the things we need and use daily, from engines, to gas, to electrical and electronic equipment.