A company has prepared the following projections for a year 2021 The data for the 2020 is given below Sales 21000 units Selling Price per unit RO.40 Variable Costs per unit RO.25 Total Costs per unit RO.35 Credit period allowed One Month. For the year 2021 company proposes to increase the credit period allowed to its customers from one month to two month. It is expected that due to change in policy as above will increase the sales by 8 % Calculate the closing receivable for the year 2021

A company has prepared the following projections for a year 2021 The data for the 2020 is given below Sales 21000 units Selling Price per unit RO.40 Variable Costs per unit RO.25 Total Costs per unit RO.35 Credit period allowed One Month. For the year 2021 company proposes to increase the credit period allowed to its customers from one month to two month. It is expected that due to change in policy as above will increase the sales by 8 % Calculate the closing receivable for the year 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entity B's current sales on credit: 28,240Collection period: 3 monthsMarket interest rate: 25%The company is considering to apply the 6/7 net 30 policy due to the excessive competition in the sector. It is estimated that 45% of customers can take advantage of this situation and the collection period will be reduced to 1.5 months. 1) What is the additional cost of the cash discount to the firm?a) 1,212,1b) 1,199.9c) 2,666.4d) 762.5e) 856.7 2) What is the additional benefit of the cash discount? 3) Should the entity apply the cash discount or not?
ebbing eflopse bank and trust offers an APR of 41.09 percent compounded quarterlt on its credit cards. Vanishing vortex regional Bank offers an APR OF 39.78 percent compounded daily on jts credit cards. A. what is rhe effective annual rate for ebbing eclipse bank and trust? B what is the effective annual rate for vanishing vortex bank and trust? C. which bank credit card is better?
0. Swetres Company has the following sales forecast for the selected three-month period in 2018. April, P120,000; May, P70,000; June, P80,000. 70% of sales are collected in the month of sale, and the balance are collected in the following month. Accounts receivable balance in April 1, P100,000. Cash balance in April 1, P60,000. Minimum cash balance required is P50,000. Cash can be borrowed in the multiples of P10,000 from local bank (disregard the interest charges). What is the cash balance at the end of April assuming that cash is received only from customers and that P200,000 is the cash out during April? 11.Selected information from the accounting records of Roleg Co. is as follows: Net accounts receivable at Dec. 31, 2018, P900,000; Net accounts receivable at Dec. 31, 2019, P1,000,000; Inventories at Dec. 31, 2018, P1,100,000; Inventories at Dec. 31, 2019, P1,200,000; Accounts receivable turnover, 5 times; inventory turnover, 4 times. What is Roleg's gross margin for 2019? 12.…
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Find the What is the cC of initial cost 936,069$, annual costs of 42,230s, and recurring costs every 5 years of 94,1348 at IR 12% per year. "Enter the final value using +/- sign and without the currency." Example: -23.43 OR +23.43
The major supplier of SS Corp. offers credit terms of 2/10, n/35. What is the net benefit (in rate or percent) of paying on the 35th day instead of obtained a ioan that would cost SS 9% interest per year. Use 360 riays and use the compounded annual effective cost.
Fitzgerald, Incorporated, currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is .67 percent per month. Price per unit Cost per unit Unit sales per month Current New Policy Policy $170 $173 $ 134 $ 137 1,290 1,320 Calculate the NPV of the decision to change credit policies. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Answer is complete but not entirely correct. $ 646.71
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A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 18.03% 16.70% 17.68% 15.71% 16.73% Please answer fast i give you upvote.
A store charges 2% per month to its customers.find the effective annual rate.
vv. Axis Wells and Excavation(AWE) currently generates 55,000 in annual sales. AWE sells on terms of net 50, and it’s accounts receivable balance averages $11,000. AWE is considering a new credit policy with terms of net 25. Under the new policy, sales will decrease to 36,000, and accounts receivable will average 12,000. Compute the days sales outstanding (DSO) under the existing policy and the proposed policy. Assume there are 360 days ina a year. Round your answer to the nearest whole number. DSO existing: Days DSO new: Days
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