Exercise 814 Part Level Submission Suppose the following inf

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 2016 (in millions) Accounts receivable (gross) Accounts recelvable (net) Allowance for doubtful accounts Sales revenue 3,784 4,864 1 4,719 145 37,16038,120 6,919 7,355 3,461 323 Totai current assets Answer each of the following questions decimal place e-p. 12.s, Use 365 Calculate the accounts receivable turnover and the average colection period for 2017 for FedEx Corporation. (Round answers to a days for calculation.) Accounts receivable turnover The average collection period for 2017 Click if you would like to Show Work for this question: times days Open Show Work

Solution

Average accounts receivables = (Begining accounts receiveables + Ending accounts receivables )/2

= (3,784 + 4,864)/2

= $4,324

Accounts receivable turnover = Net credit sales/Average accounts receivables

= 37,160/4,324

= 8.59

Average collection period = Days in a year/Accounts receivable turnover

= 365/8.59

= 42 Days