Question:
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 total current assets?
3. Evaluate the balance in Fed allowance for doubtful accounts.