Exercise 8-14 (Part Level Submission)

Suppose the following information was taken from the 2017 financial statements ofFedEx Corporation, a major global transportation/delivery company.

(in millions)

2017

2016

Accounts receivable (gross)

$ 3,488

$4,225

Accounts receivable (net)

3,231

3,923

Allowance for doubtful accounts

257

302

Sales revenue

33,480

35,299

Total current assets

6,987

6,756

Answer each of the following questions.

(a)

Calculate the accounts receivable turnover and the average collection period for 2017 for FedEx Corporation.(Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Accounts receivable turnover

times

The average collection period for 2017

days

(b)

Is accounts receivable a material component of the company's total current assets?