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laila [671]
4 years ago
7

Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportati

on / delivery company.
2014 2014
Accounts receivable (gross) $3,697 $4,835
Accounts receivable (net) 3,460 4,187
Allowance for doubtful accounts 237 648
Sales revenue 37,368 39,579
Total current assets 7,254 7,691

Answer each of the following questions.

a. Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx.
b. Is accounts receivable a material component of the company?
Business
2 answers:
Afina-wow [57]4 years ago
7 0

Answer:

yes

Explanation:

nadezda [96]4 years ago
5 0

Answer:

A/R    TO 9.77

Days on Inventory 37

YES As it weight as almost half of the current assets of the company

Explanation:

The financial statement post the current year first and the last year in the secodn column therefore, the second colum is the year 2013 and my calculation will be based on that.

2014 2013

Accounts receivable (gross) $3,697 $4,835

Accounts receivable (net) 3,460 4,187

Allowance for doubtful accounts 237 648

Sales revenue 37,368 39,579

Total current assets 7,254 7,69

\frac{Sales}{Average A/R} = $A/RTurnover

​where:

$$Average A/R=(Beginning A/R+ Ending A/R)/2

Sales 37,368

beginning 4,187

ending 3,460

$$Average A/R=4,187 + 3,460)/2

Avg. A/R   3823.5

\frac{37368}{3823.5} = $Inventory Turnover

A/R    TO 9.77324441

\frac{365}{Inventory TO} = $Avgerage Collection period

\frac{365}{9.77324440957238} = $Avgerage Collection period

Days on Inventory 37

3,460 / 7,254 = 0.4769

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stepan [7]
Capital for a month on a balance sheet:

The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.
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4 years ago
The sales department of a consumer products organization realized that its rivals were adopting new customer relationship manage
Dmitry [639]

Answer: Option (C)

Explanation:

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3 0
3 years ago
Which is not true of a perfectly competitive market? a. At the long-run equilibrium, economic profit is less than accounting pro
shtirl [24]

Answer:

B is the correct option.

Explanation:

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5 0
3 years ago
The following are common categories on a classified balance sheet. a) Current assets b) Long-term investments c) Plant assets d)
noname [10]

Answer:

Land not currently used in operations - Long-term investments

Notes payable (due in five years) - Long-term liabilities

Accounts receivable - Current assets

Trademarks - Intangible assets

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8 0
3 years ago
Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund ea
antiseptic1488 [7]

Answer:

$1,724.138

Explanation:

Given:

Payment received each year = $125,000

Rate of return = 7.25 % = 0.0725

Present value = ?

Computation of Present value:

Present value = Payment received each year / Rate of return

= $125,000 / 0.0725

= $1724137.93

Present value = $1724137.93

Present value = $1,724,138 (approx)

Therefore, firm have to contribute  $1,724.138

5 0
3 years ago
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