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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.

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Which agricultural system trapped many southern blacks in a cycle of debt and poverty despite their hard work?
Citrus2011 [14]

Answer:

sharecropping

Explanation:

Sharecropping is a system of tenancy agriculture . In it a landowner gives a portion of his land to  a labour for the purpose of raising crop . In return , he gets a share of crop raised by him for free.

After the civil war , former slaves were in search of jobs . Due to depression and absence of credit system ,they went into this deal of sharecropping with whites . They also borrowed heavily for getting seeds and fertilizer. Landlords charged high interest rate for that which led them to debt-trap. Landowner also put condition like selling the yield on  their condition  at pre-specified cheap price.

7 0
3 years ago
Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax
Ad libitum [116K]

Answer:

The Income Statement  is-

Sales = $435,000

Costs = 216,000

Depreciation = 40,000

EBIT= $179,000

Interest = 21,000

EBT = $158,000

Taxes = 55,300

Net income = $102,700

I have done this question before in my "Money Management" Dual enrolled class.

:)

4 0
3 years ago
During the initial Forming stage, where new team members are excited yet concerned that the project work might be difficult, the
Snezhnost [94]

Answer:

The answer is a. True.

Explanation:

During the initial stages, the members might be concerned that the project work might be difficult and this can act as a demotivating factor in the long run.

Because of this, if the manager can start the initial stages of planning of the operating methods, thus will be helpful to ease the tension and the doubts among the members.

8 0
3 years ago
At the beginning of 2019, a corporation had assets of $270,000 and liabilities of $160,000. During 2019, assets increase $25,000
Doss [256]

Answer:

Shareholders Equity = $130000

Explanation:

given data

asset beginning  = $270,000

liabilities beginning = $160,000

assets increase = $25,000

liabilities increase =  $5,000

solution

Shareholders Equity on Dec 31 , 2014 is $111000

first we get here total Assets that is express as

total Assets = Assets at the beginning + assets increase   ...............1

total Assets = $270000 + $25,000

total Assets = $295000

now we get total Liabilities that is

total Liabilities = Liabilities at beginning + liabilities increase   ...........2

total Liabilities = $160,000 +  $5,000

total Liabilities = $165000

so here Shareholders Equity will be as

Shareholders Equity = total Assets - total Liabilities    ..............3

Shareholders Equity = $295000 - $165000  

Shareholders Equity = $130000

4 0
3 years ago
On July 1, Shady Creek Resort borrowed $310,000 cash by signing a 10-year, 11% installment note requiring equal payments each Ju
mafiozo [28]

Answer:

$34,100

Explanation:

The interest on the installment note for the first year is a function of both the face value of the note and interest rate of 11%

Interest expense on the first annual payment=$310,000*11%

Interest expense on the first annual payment=$34,100

The amount principal repayment in respect of the  first annual payment is the amount of payment which is $52,639 minus the interest portion of the payment.

The Principal portion of the first payment=$52,639-$34,100=$18,539

8 0
3 years ago
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