Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company.

(in millions) 2014 2013 Accounts receivable (gross) $ 3,587 $ 4,517 Accounts receivable (net) 3,391 4,359 Allowance for doubtful accounts 196 158 Sales revenue 35,497 37,953 Total current assets 7,116 7,244 Instructions Answer each of the following questions.

(a) Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx.

(b) Is accounts receivable a material component of the company’s total current assets?

(c) Evaluate the balance in FedEx’s allowance for doubtful accounts.

AppendixLO1