Find the accounts receivable turnover ratio

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Reference no: EM1312810

Computing and Interpreting the Receivables Turnover Ratio

A recent annual report for FedEx containing the following data:

	(Dollars in thousands)
	Current Year	Previous Year
Accounts receivable	$3,178,000	$2,776,000
Less: Allowance for doubtful accounts	151,000	149,000
Net Accounts Receivable	$3,027,000	$2,627,000
Net Sales (assume all on credit)	$24,710,000

Required:
1) Determine the accounts receivable turnover ratio and average day's sales in receivables for the current year.
2) Explain the meaning of each number

Reference no: EM1312810

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