Calculate receivables turnover ratio and average collection

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Reference no: EM13139588

The following information was taken from the 2007 financial statements of FedEx Corporation, a major global transportation/delivery company.

(in millions) 2007 2006
Accounts receivable (gross) $4,078 $3,660
Accounts receivable (net) 3,942 3,516
Allowance for doubtful accounts 136 144
Sales 35,214 32,294
Total current assets 6,629 6,464

Answer each of the following questions.

(a) Calculate the receivables turnover ratio and the average collection period for 2007 for FedEx. (Round to 3 decimal places, e.g. 2.555.)

Receivables turnover ratio times
Average collection period days

(b) Is accounts receivable a material component of the company's total current assets yes or no?

Calculate what percentage accounts receivable (net) is of current assets for 2007. (Round to 0 decimal places, e.g. 25.)

Reference no: EM13139588

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