Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the following data:
Question:
A recent annual report for FedEx contained the following data:
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
2. Explain the meaning of eachnumber.
Transcribed Image Text:
(dollars in thousands) Current Year Previous Year Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) $ 3,587,000 $4.517,000 196,000 $ 3,391,000 $4.359,000 $35,497,000
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