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

Question:

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 Less: Allowance for doubtful accounts Net accounts

Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
2. Explain the meaning of eachnumber.

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Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

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Question Posted: Dec 12, 2011 07:48 AM

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

Question:

(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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Req 1 Receivables turnover Net Sales 35497000 916 times Average Net Trade Accounts Receivab...View the full answer

Financial Accounting

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