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laila [671]
3 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]3 years ago
7 0

Answer:

yes

Explanation:

nadezda [96]3 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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Answer:

D.

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Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.

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3 years ago
"Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pr
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Answer:

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

Explanation:

According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,

price = $8.10

avg variable cost = $8.00

avg total cost = $8.25

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

8 0
3 years ago
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Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred.
satela [25.4K]

The May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system are:

Charlie Company Journal entries

May 13

Debit Account receivable $360

(8×$45)

Credit Sales $360

(To record credit sales)

May 13

Debit Cost of goods sold $208

(8×$26)

Credit Merchandise inventory $208

(To record cost of goods sold)

May 16

Debit Sales return and allowances $45

Credit Account receivable $45

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May 16

Debit Merchandise inventory $26

Credit Cost of goods sold $26

(To record cost of goods sold returned)

May 23

Debit Cash $302

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Debit Sales discount $13

(4%×$315)

Credit Account receivable $315

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3 years ago
End item A requires three component parts: B, C, and D. The BOM indicates that for each completed A, 1 unit of B, 2 units of C,
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Answer:

30 in total

Explanation:

In order to calculate how many items A we can produce we need to check how many units required we have, in this case, we have:

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50 C's

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We require 2 units of C, 1 Unit of B, and 1 unit of C.

As you can see in our inventory we only have 15 units of D's, meaning that that is our maximum number of items A produced this week, since we already have 15 A items, we can deliver 30 A products this week.

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<u>The </u><u>separation </u><u>of a </u><u>manufacturing process</u><u> into distinct tasks and the assignment of different tasks to different individuals is called </u><u>specialization</u><u>.</u>

What is the separation of a manufacturing process?

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What is conditioning withinside the production system?

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