Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnover Average collection period times days

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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Suppose the following information was taken from the 2025 financial statements of FedEx Corporation, a major global
transportation/delivery company.
(in millions)
Accounts receivable (gross)
Accounts receivable (net)
Allowance for doubtful accounts
Sales revenue
Total current assets
(a)
Answer each of the following questions.
Accounts receivable turnover
2025
$3,720
Average collection period
3,350
370
36,575
7,190
2024
$4,640
4,350
290
39,075
Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal
place, e.g. 12.5. Use 365 days for calculation.)
7,252
times
days
Transcribed Image Text:Suppose the following information was taken from the 2025 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets (a) Answer each of the following questions. Accounts receivable turnover 2025 $3,720 Average collection period 3,350 370 36,575 7,190 2024 $4,640 4,350 290 39,075 Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) 7,252 times days
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