LS kianesy rinmarnciat Acconwntin 8e Hele I Sy CALCULATOR PRINTEERIONBACKHEXT! O

Question

LS kianesy rinmarnciat Acconwntin 8e Hele I Sy CALCULATOR PRINTEERIONBACKHEXT! OURCES 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 2017 016 (gross) 3,855 $4,798 3,539 4,218 Accounts receivable (net) 316 32,353 38,881 6,879 7,872 Sales revenue Total current assets Answer each of the following questions. (a) turnover and the average collection period for 2017 for FedEx Corporation. (Round answers to 1 decimal place, y Studye.g. 12.5. Use 365 days for calculation.) nts receivable turnover times days The average collection period for 2017 the part above. The parts of this question must be completed in order. This part will be available when you 3/18/2018

Explanation / Answer

Calculation of accounts recievable turnover ratio for 2017: Accounts recievable turnover ratio= Net credit sales/ average net accounts recievable Average net accounts recievable=(4218+3539)/2=3878.5 Accounts recievable turnover ratio= 32353/3878.50= 8.3 Therefore accounts recievable turnover ratio is 8.3 times Calculation of average collection period for 2017: Average collection period= 365/ Accounts recievable turnover ratio= 365/8.3= 43.97 Therefore average collection period for 365 days is 44 days

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