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RUDIKE [14]
3 years ago
5

Return to questionItem 6Item 6 E8-16 Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] FedEx Co

rporation reported the following rounded amounts (in millions): 2016 2015 Accounts Receivable $ 7,430 $ 5,905 Allowance for Doubtful Accounts (180 ) (185 ) Accounts Receivable, Net of Allowance $ 7,250 $ 5,720 Net Sales (assume all on credit) $ 50,370 $ 47,450 Required: Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.)
Business
1 answer:
madreJ [45]3 years ago
4 0

<u>Solution and Explanation:</u>

The following formulas will be used in order to calculate the accounts receivable turnover ratio and in order to find out the number of days collect.

Accounts receivable turnover ratio = Net sales divided by Average net Accounts receivable

=\$ 50,370 /[(\$ 7,250+\$ 5,720) / 2]

=\$ 50,370 / \$ 6,485

= 7.77 times

<u>Days to collect</u> = 365 divided by Accounts receivable turnover ratio

= $365  divided by 7.77

= 47 days

<u>Note</u>: The number of days that has been assumed is 365 days

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Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the d
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Answer: A. equal to marginal cost where it intersects the demand curve

Explanation:

In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.

In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.

The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.

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3 years ago
Calip Corporation, a merchandising company, reported the following results for October: Sales $413,000 Cost of goods sold (all v
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Answer:

$243,900

Explanation:

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Cost of goods sold= $169,100

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Total variable administrative expense= $13,100

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Which of the following is true of both paying with a check and paying with a debit card? A. Both work like a loan from your bank
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Beck Company has inventory of​ $725,000 in its stores as of December 31. It also has two shipments in transit that left the​ sup
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Answer:

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