Determine receivables turnover ratio and average days sales

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Reference no: EM13534311

Computing and Interpreting the Receivables Turnover Ratio - A recent annual report for FedEx contained the following data:

(dollars in thousands)

Current Year

Previous Year

Accounts receivable

$3,587,000

$4,517,000

Less: Allowance for doubtful accounts

196,000

158,000

Net accounts receivable

$3,391,000

$4,359,000

Net sales (assume all on credit)

$35,497,000

Required:

1. Determine the receivables turnover ratio and average days sales in receivables for the current year.

2. Explain the meaning of each number.

Reference no: EM13534311

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