E8-11

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.

1. Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx.

2. Is accounts receivable a material component of the company