4 A recent annual report for FedEx contained the following data: rrent Year Prev

Question

4 A recent annual report for FedEx contained the following data: rrent Year Previous Year Accounts receivable Less: Alawance tor doubttul accounts Net accounts receivable Net sales (assume all on credit) 18000 131000 147 DLO $35,397 00 Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Enter your answers in thousands not in dollars. Ratio values should be rounded to 2 decimal places.) Numerator 01 times e Days Sales in Receivables days

Explanation / Answer

Answer for 1)

Recievables turnover ratio:

Numerator:credit sales(in thousands)=$35397(please check the figure once it is not clear for me)

Denominator:average net accounts recievables=[$(3413000+4370000)/2](in thousands)=$3891.5

Recievables turnover ratio:9.1 times

Average days sales in recievables:

Numerator:number of days:365 days

Denominator:reci recievables turnover ratio:9.1 times

Averages days=40.11 days

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