MAT540 - Quantitative Methods (Homework # 2) Section A True/False Indicate whether the sentence or statement is true or false. __F__ 1. Two events that are independent cannot be mutually exclusive. __F__ 2. A joint probability can have a value greater than 1. __F__ 3. The intersection of A and Ac is the entire sample space. __T__ 4. If 50 of 250 people contacted make a donation to the city symphony, then the relative frequency method assigns a probability of .2 to the outcome of making a donation. __T__ 5. An automobile dealership is waiting to take delivery of nine new cars. Today, anywhere from zero to all nine cars might be delivered. It is appropriate to use the classical method to assign a probability of 1/10 to …show more content…
all accounts fewer than 31 or more than 60 days past due. c. all accounts from new customers and all accounts that are from 31 to 60 days past due. d. all new customers whose accounts are between 31 and 60 days past due. __C__ 15. In the set of all past due accounts, let the event A mean the account is between 31 and 60 days past due and the event B mean the account is that of a new customer. The union of A and B is a. all new customers. b. all accounts fewer than 31 or more than 60 days past due. c. all accounts from new customers and all accounts that are from 31 to 60 days past due. d. all new customers whose accounts are between 31 and 60 days past due. __D__ 16. In the set of all past due accounts, let the event A mean the account is between 31 and 60 days past due and the event B mean the account is that of a new customer. The intersection of A and B is a. all new customers. b. all accounts fewer than 31 or more than 60 days past due. c. all accounts from new customers and all accounts that are from 31 to 60 days past due. d. all new customers whose accounts are between 31 and 60 days past due. __A__ 17. The probability of an event a. is the sum of the probabilities of the sample points in the event. b. is the product of the probabilities of the sample points in the event. c. is the maximum of the probabilities of the sample points in the event. d. is the minimum of the probabilities of the sample points in the event. __C__ 18. If P
5. In your Section_3 folder, navigate to and open the Example_Check_Register and Example_Bank_Statement, and then answer the questions below.
One assumption that should be clearly analyzed is that the collection period is of 30 days net. Not always customers have the ability and willingness to pay off their debts in 30 days, some may take more time, and some could incur in bad debt.
This also would cause their average collection period to become 0, because they no longer need to collect credit payment from customers. Only a small percentage of the company’s sales have customers that buy for resale purposes, the majority sales are cash retail.
New Single Accounts – 30% of mail - 1.75 person hours per batch of 50 New Joint Accounts – 40% of mail - 2.5 person hours per batch of 50 Single accounts with CIfing already done – 10% of mail - 1.40 person hours per batch of 50 Joint Accounts with CIfing already done – 20% of mail - 1.75 person hours per batch of 50 Time Spent on Posting Cheques -
• You must pay at least the minimum payment by the payment due date to avoid late fees, to avoid the loss of any promotional rates and to keep your account in good standing.
To consider this we need net credit sales and average receivable balance. This ratio indicates average collection period should be consistent with corporate credit policy. An increase suggests a decline in financial health of customers.
Answer: Aging schedules definitely help a company keep track of which of its customers are paying on time, and are useful in figuring cash flow. In this case, it is apparent that the majority of accounts receivable by the end of March are less than 30 days old (80.8%). By the end of June, that percentage goes down to 63.7%. By the end of March, 19.2% of accounts receivable are between 30-60 days old, and by the end of June, there is 36.3%. 0% of accounts receivable get to be over 60 days old, which indicates payment.
Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity account is decreased by a debit [2]BASIC BANK02 - BAT 010 The Income Summary account contains: A. Total revenues and total expenses for the year B. Total assets and total liabilities at year end C. Total revenues, expenses, assets, and liabilities
The primary target for the accounts were the vulnerable such as immigrants who spoke little English, older adults with memory problems, students opening their first account and small business owners with multiple credit lines
Has the most loosely credit policies, which has caused them to collect their receivables longer than the other ones.
Moreover, from the analyse tab and the function “Age”, an aging of the Accounts Receivable was performed.
Allow a 30-day grace period on all accounts receivable overdue at the end of the year. As these accounts will no longer be overdue, the company will not need an allowance for overdue accounts.
Below apple account is a past due user / delinquent account type. Hence you see the payment option on the screen. In production, the apple customer won’t came across an scenario where they would be marked as past due/ delinquent account because they would be have either 60 or 90 days’ pay back option.
11. Accounts receivable turnover and days sales in accounts receivable for the last three years:
Century National Bank has offices in several cities in the Midwest and the southeastern part of the United States. Mr. Dan Selig, president and CEO, would like to know the characteristics of his checking account customer. To better understand the customers, Mr. Selig asked Ms. Wendy Lamberg, director of planning, to select a sample of customers and prepare a report. To begin, she has appointed a team from her staff and the team has selected a random sample of 60 customers. All the information gathered is tabulated in the table below: