Help I S 8-14 (Part Level Submission) Suppose the following information was take

Question

Help I S 8-14 (Part Level Submission) Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global trans 2017 2016 Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets 3,772 $4,567 3,564 4,524 43 38,474 41,287 7,367 7,193 Answer each of the following questions. 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.) Accounts receivable turnover The average collection period for 2017 days SAVE FOR LATER : 0 of 5 used

Explanation / Answer

Accounts Receivables Turnover Ratio = Net Credit Sales Accounts Receivables = 38474 3564 = 10.8 Days (approx.) Note: Total sale has been considered as credit sales. Accounts receivable ( net) are taken while calculating ratio. Average Collection Period = No. of Working Days Accounts Receivables Turnover ratio = 365 10.8 = 33.8 days (approx)

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