1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
12

Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportati

on/delivery company. (in millions) 2022 2021 Accounts receivable (gross) $ 3,587 $ 4,517 Accounts receivable (net) 3,391 4,359 Allowance for doubtful accounts 196 158 Sales revenue 35,497 37,953 Total current assets 7,116 7,244
1. Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx.
2. Is accounts receivable a material component of the company?
Business
1 answer:
Rzqust [24]3 years ago
6 0

Answer:

(1) (i) 9.16 times

(ii) 39.845 days

(2) Yes

Explanation:

1. Net credit sales = 35,497

Average net receivables = (3,391 + 4,359) ÷ 2

                                          = 3,875

So,

Receivables turnover ratio = Sales revenue (2022) ÷ Average net receivables

                                             = 35,497 ÷ 3,875

                                             = 9.16 times

However I don't know how they got the net receivables figure, because:

Gross receivable - ADA = net receivable,

but it doesn't work out like this above, so since the net receivable is given, I just used it as given.

Average collection period = 365 days ÷ Receivables turnover

                                            = 365 ÷ 9.16

                                            = 39.845 days

2. In order for something to be "material" it must be important.

Accounts Receivable are part of current assets and they are very important, so the answer is yes.

You might be interested in
Consider a hypothetical economy where there are no taxes and no international trade. households spend $0.80 of each additional d
KengaRu [80]
The formula for the multiplier is 1 / (1 - MPC), whereby MPC represents the marginal propensity to consume. Applying the formula to our case, we get: M (multiplier) = 1/(1-0.8) = 1/0.2 = 5. The multiplier in this economy is therefore 5.
7 0
3 years ago
Ichiro is injured in a two-car accident and sues Heather, the driver of the other vehicle, alleging negligence. Heather claims t
maks197457 [2]

Answer:

d. even if Ichiro was only slightly at fault.

Explanation:

If Ichiro is suing Heather for negligence, but he himself is found to have negiglent as well, his possibilities of winning the case are less even if he was only slightly at fault.

This is because the fact that he was negligent as well reduces his condition of victim, and makes him an active participant in the accident. In other words, if Ichiro is found negligent, it means that the accident and his subsequent injuries were also his fault.

5 0
3 years ago
Read 2 more answers
A market situation where a small number of sellers compose the entire industry is called
Nadusha1986 [10]

Answer:

The correct answer is: oligopoly.

Explanation:

A market structure where there are only a few firms is called an oligopoly market. These firms can be producing either identical products or differentiated products.  

Because of few firms, there is a high degree of competition in the market. The firms are price makers and face a downward sloping curve.  

There is interdependence in the market such that the economic decisions of a firm affects the price, profits and output level of its rivals. So the firms have to consider the reaction of its rivals before making an economic decision.

4 0
3 years ago
Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37 comma 000 sails per year and i
kirza4 [7]

Answer:

Increase in income= $550,000

Explanation:

Giving the following information:

Variable costs per​ unit:

Manufacturing $60

If a special pricing order is accepted for 5,500 sails at a sales price of $ 160 per​ unit

Because there is no change in the fixed costs and there are no variable selling and administrative costs, the effect on income will be equal to the change in total contribution margin.

Total contribution margin= number of units* (selling price - unitary variable cost

Total contribution margin change= 5,500* (160 - 60)= $550,000

Increase in income= $550,000

8 0
3 years ago
Hibiscus Corporation began operations on January 1, Year 1. On December 15, Year 1, the company received a payment in the amount
mars1129 [50]

Answer:

$12,000

Explanation:

The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.

The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:

  • partnerships or C corporations with less than $5 million in yearly revenue
  • sole proprietorships and S corporations with less than $1 million in yearly revenues
  • family owned farms
  • you provide personal services and 95% of your revenue comes from it
  • no publicly traded corporation is allowed

4 0
3 years ago
Other questions:
  • Which of the following is an example of positive technological​ change? Positive technological change occurs when
    14·1 answer
  • According to the time-driven model of leadership, _____ styles are reserved for decisions where employee commitment is unimporta
    12·1 answer
  • Which of the following statements is true of effective business communication? Group of answer choices The communication is most
    9·1 answer
  • Hawke Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2019 $
    8·1 answer
  • The fifth step of the interview process is:
    8·1 answer
  • The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you fin
    9·1 answer
  • Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price
    8·1 answer
  • On October 1, Oriole Corporation’s stockholders’ equity is as follows.
    7·1 answer
  • Step 8 of 8
    15·1 answer
  • What does a management accountant need to do before he or she can take
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!