Ask Question
31 January, 21:10

A recent annual report for FedEx contained the following dа ta: (dollars in thousands) Current Year Previous Year $ 3,727,000 4,527,000 Accounts receivable 191,000 Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) 141,000 $ 3,536,000 $ 4,386,000 $35,497,000 Required: 1. Determine the receivable turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Enter your answers in thousands not in dollars. Ratio values should be rounded to 2 decimal places.) Receivables Turnover Ratio Numerator times Denominator Average Days Sales in Receivables Numerator days Denominator

+3
Answers (1)
  1. 1 February, 00:53
    0
    8.96 times; 40.74 days

    Explanation:

    Given that,

    Net Credit sales = $35,497,000

    Number of days in the year = 365

    Receivables Turnover Ratio:

    = Net Credit sales : Average Accounts receivable

    = $35,497,000 : [ ($3,536,000 + $4,386,000) : 2]

    = 8.96 times

    Average Day Sales in Receivables:

    = Number of days in the year : Accounts receivable turnover ratio

    = 365 : 8.96

    = 40.74 days
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A recent annual report for FedEx contained the following dа ta: (dollars in thousands) Current Year Previous Year $ 3,727,000 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers