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
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
Marina86 [1]
<span>This is a corporation. Corporations usually consist of boards of directors and other groups of people, and can continue to exist even after the founders of the business cease to exist or otherwise leave their founding role.</span>
8 0
3 years ago
Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous c
leva [86]
Self-interest of course! Though you gave us no clue as to who is Adam... You can tell it's mostly self-interest due to the fact that he hasn't taken any class or anything on it. Looks to me that he genuinely just loves cooking!
4 0
3 years ago
Read 2 more answers
an economy in which all the boys became farmers when they are adults just as their fathers and grandfathers did would be an exam
sergeinik [125]
That would be an example of traditional economy.
8 0
3 years ago
Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment f
kotegsom [21]

Answer:

One company pays 100%, the other re-reimburses 50%  

Explanation:

If an environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup.

What could happen if the two of them don't agree to cooperate in the cleanup is that one of the companies will eventually settle the costs fully while the other party will have to reimburse the party that pays, 50%.

The paying company could make claims because the environmental impact assessment has already found both companies jointly liable. hence each company ought to jointly share the costs

4 0
3 years ago
Read 2 more answers
In the context of analyzing the health, activities, and performance of a business, which of the following is a nonfinancial meth
Solnce55 [7]

3. Short surveys

Explanation:

Financial statement analysis is the method of analyzing the economic structure and reviewing the future of a business to earn income.

Types of Financial statement analysis are as follows:

  • Fundamental analysis
  • Horizontal analysis
  • Vertical analysis
  • Ratio analysis
  • DuPont analysis
  • Dividend discount model

The 3rd option is given as Short surveys which is a non-financial method of analysis.

5 0
3 years ago
Other questions:
  • The NASDAQ is an example of what type of stock exchange?
    11·1 answer
  • In the ____ stage, denial occurs despite signs of deteriorating performance.
    9·1 answer
  • Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana.
    12·1 answer
  • Windsor Corporation engaged in the following cash transactions during 2020. Sale of land and building $187570 Purchase of treasu
    10·1 answer
  • The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022
    8·1 answer
  • Which one of the following descriptions best describes horizontal integration? 1) the economic development of the American West
    12·1 answer
  • The Fed increased the supply of US dollars at an average rate of 6 percent per year over the 1980-2005 period. Based on the theo
    12·1 answer
  • A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building a
    7·1 answer
  • At present, the gap between those employees who say they want unions and those that have union representation in the private sec
    15·1 answer
  • A shift in a ppc/ppf to the______________ illustrates growth which may be generated by better utilizing existing resources (impr
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!