CALCULATOR MESSACE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Exercise 8-14

Question

CALCULATOR MESSACE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Exercise 8-14 Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major olobal transportation/delivery company, company. (in millions) 2017 2016 Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets 3,499 4,658 3,0554,541 32,21338,029 7,292 6,635 Answer each of the following questions. Calculate the accounts receivable tunover and the average collection period for 2017 for FedEx Corporation. (Round ansiwers to 1 decimal place, e.g, 12.5, Use 365 days for calculation.) Accounts receivable turnover times The average collection period for 2017 days SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SEM?AR EXERCSE dugenishared/assianment /test/aglist.uni?id

Explanation / Answer

1. Accounts receivable Turnover ratio = Net Credit Sales / (average receivables)

= 32213/{(3499+4658)/2}

=7.9 times

2. Average collection period = 365/Receivable turnover ratio

= 365/7.9

46.20 days

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