Exercise 8-14 (Part Level Submission) Suppose the following information was take

Question

Exercise 8-14 (Part Level Submission) Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) 2017 2016 Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets $3,368 4,683 4,392 291 39,677 7,070 3,242 126 36,395 6,407 Answer each of the following questions. Calculate the accounts receivable tunover and the average collection period for 2017 for FedEx Corporation. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnover The average collection period for 2017 Click if you would like to Show Work for this question: en Show Work times days SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

(a) Accounts receivable turnover = Net credit sales / Average net accounts receivable

Accounts receivable turnover = $36,395 / / [($3,242 + $4,392)/2] = 9.5 times

Average collection period (i.e., days in receivable) = 365/Accounts receivable turnover

Average collection period (i.e., days in receivable) = 365/9.5 = 38.4 days

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