Exercise 8-14 Suppose the following information was taken from the 2017 financia

Question

Exercise 8-14

Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company.

Calculate the accounts receivable turnover 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.)

Is accounts receivable a material component of the company’s total current assets?

Exercise 8-14: List of Accounts to use

Is accounts receivable a material component of the company’s total current assets?

Exercise 8-14: List of Accounts to use

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Doubtful Accounts
Bad Debts Expense
Cash
Common Stock
Cost of Goods Sold
Dividends
Income Tax Expense
Income Taxes Payable
Interest Receivable
Interest Revenue
Inventory
No Entry
Notes Receivable
Other Operating Expenses
Other Receivables
Retained Earnings
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Service Charge Expense
Supplies
Supplies Expense

Explanation / Answer

Account receivable turnover = sales/average accosunt rreceivable (3539+4218)/2 3878.5 32,353/3878.50 8.3 answer average collection period 360/8.3 43.4 days yes

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