Question

In: Accounting

Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major...

Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company.

(in millions)

2022

2021

Accounts receivable (gross)

$ 3,720

$ 4,540

Accounts receivable (net)

3,400

4,350

Allowance for doubtful accounts

320

190

Sales revenue

37,975

40,475

Total current assets

7,188

7,286


Answer each of the following questions.

(a)

Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Accounts receivable turnover

 times

The average collection period for 2022

 days

Solutions

Expert Solution

(a)

For 2022

Accounts receivable (gross) , beginning = $4,540

Accounts receivable (gross) , ending= $3,720

Average Accounts receivable (gross) = (Accounts receivable (gross) , beginning + Accounts receivable (gross) , ending)/2

= (4,540+3,720)/2

= $4,130

Sales revenue = $37,975

Accounts receivable turnover = Sales revenue / Average Accounts receivable (gross)

= 37,975/4,130

= 9.2 times

The average collection period for 2022 = 365/Accounts receivable turnover

= 365/9.2

= 39.7 days

Accounts receivable turnover

 9.2 times

The average collection period for 2022

 39.7 days

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major...
Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) 2017 2016 Accounts receivable (gross) $ 3,839 $ 4,712 Accounts receivable (net) 3,133 4,536 Allowance for doubtful accounts 706 176 Sales revenue 38,387 38,915 Total current assets 6,692 6,915 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....
Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All...
Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.) Common stock $2,990 Accumulated depreciation—equipment $4,380 Prepaid rent 160 Accounts payable 1,090 Equipment 6,220 Patents 2,220 Stock investments (long-term) 690 Notes payable (long-term) 970 Debt investments (short-term) 1,950 Retained earnings 6,100 Income taxes payable 170 Accounts receivable 1,870 Cash 1,340 Inventory 1,250 Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order...
Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All...
Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.) Common stock $2,990 Accumulated depreciation—equipment $4,380 Prepaid rent 160 Accounts payable 1,090 Equipment 6,220 Patents 2,220 Stock investments (long-term) 690 Notes payable (long-term) 970 Debt investments (short-term) 1,950 Retained earnings 6,100 Income taxes payable 170 Accounts receivable 1,870 Cash 1,340 Inventory 1,250 Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order...
1. These items are taken from the financial statements of Grouper Corporation for 2022. Retained earnings...
1. These items are taken from the financial statements of Grouper Corporation for 2022. Retained earnings (beginning of year) $33,280 Utilities expense 2,110 Equipment 68,280 Accounts payable 22,570 Cash 15,070 Salaries and wages payable 5,840 Common stock 12,000 Dividends 12,000 Service revenue 69,290 Prepaid insurance 6,340 Maintenance and repairs expense 1,690 Depreciation expense 3,490 Accounts receivable 15,970 Insurance expense 2,310 Salaries and wages expense 38,290 Accumulated depreciation—equipment 22,570 Prepare a retained earnings statement for the year ended December 31, 2022....
1. These items are taken from the financial statements of Grouper Corporation for 2022. Retained earnings...
1. These items are taken from the financial statements of Grouper Corporation for 2022. Retained earnings (beginning of year) $33,280 Utilities expense 2,110 Equipment 68,280 Accounts payable 22,570 Cash 15,070 Salaries and wages payable 5,840 Common stock 12,000 Dividends 12,000 Service revenue 69,290 Prepaid insurance 6,340 Maintenance and repairs expense 1,690 Depreciation expense 3,490 Accounts receivable 15,970 Insurance expense 2,310 Salaries and wages expense 38,290 Accumulated depreciation—equipment 22,570 (a1) Prepare an income statement for the year ended December 31, 2022....
The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022....
The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022. Land $197,900 Accounts receivable 22,000 Supplies 10,200 Cash 12,050 Equipment 82,100 Buildings 261,200 Land improvements 45,900 Notes receivable (due in 2023) 6,200 Accumulated depreciation—land improvements 12,700 Common stock 80,000 Retained earnings (December 31, 2022) 495,000 Accumulated depreciation—buildings 33,600 Accounts payable 9,800 Mortgage payable 91,900 Accumulated depreciation—equipment 18,950 Interest payable 3,400 Income taxes payable 15,500 Patents 46,700 Investments in stock (long-term) 71,300 Debt investments (short-term)...
The following items are taken from the financial statements of Sheridan Company at December 31, 2022....
The following items are taken from the financial statements of Sheridan Company at December 31, 2022. Land $196,500 Accounts receivable 22,600 Supplies 10,700 Cash 12,050 Equipment 84,000 Buildings 263,000 Land improvements 46,250 Notes receivable (due in 2023) 5,400 Accumulated depreciation—land improvements 13,100 Common stock 76,000 Retained earnings (December 31, 2022) 491,000 Accumulated depreciation—buildings 33,300 Accounts payable 9,900 Mortgage payable 103,950 Accumulated depreciation—equipment 18,950 Interest payable 4,000 Income taxes payable 14,700 Patents 46,700 Investments in stock (long-term) 72,400 Debt investments (short-term)...
The following items are taken from the financial statements of Cullumber Company at December 31, 2022....
The following items are taken from the financial statements of Cullumber Company at December 31, 2022. Land $196,500 Accounts receivable 21,300 Supplies 10,100 Cash 12,000 Equipment 83,100 Buildings 261,400 Land improvements 46,250 Notes receivable (due in 2023) 5,100 Accumulated depreciation—land improvements 13,100 Common stock 73,500 Retained earnings (December 31, 2022) 502,000 Accumulated depreciation—buildings 34,200 Accounts payable 9,300 Mortgage payable 90,150 Accumulated depreciation—equipment 18,700 Interest payable 3,800 Income taxes payable 15,200 Patents 47,100 Investments in stock (long-term) 72,200 Debt investments (short-term)...
The following items are taken from the financial statements of Sandhill Co. for 2022: Accounts payable...
The following items are taken from the financial statements of Sandhill Co. for 2022: Accounts payable $10,000 Accounts receivable 12,500 Accumulated depreciation—equipment 37,400 Advertising expense 21,300 Cash 13,800 Common stock 95,000 Depreciation expense 11,000 Dividends 14,300 Equipment 250,000 Insurance expense 3,900 Notes payable 89,500 Prepaid insurance 6,800 Rent expense 15,100 Retained earnings (beginning) 18,400 Salaries and wages expense 33,500 Salaries and wages payable 2,500 Service revenue 140,000 Supplies 4,900 Supplies expense 5,700 Can you explain ( Net Income, Retained Earnings...
The following accounts and amounts (in thousands) were taken from the 2022 financial statements of Blue...
The following accounts and amounts (in thousands) were taken from the 2022 financial statements of Blue Spruce Instruments, Inc. Common shares $2,500 Cash $1,045 Prepaid insurance 910 Accumulated depreciation-equipment 4,215 Equipment 9,355 Accounts payable 1,410 Salaries payable 160 Mortgage payable (due 2028) 1,015 Inventory 2,120 Retained earnings 6,545 Trading investments 1,480 Accounts receivable 990 Income tax payable 55 Prepare a classified statement of financial position as at December 31, 2022.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT