average investment in accounts receivable?
Q: The company sells on terms 2/10, net 30. Total sales for the year are P1,000,000, of which P100,000…
A: The average amount of account receivable is based on the customer who is paying early for grabbing…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: Step 1 Financial instruments are assets that can be traded, or contractual; agreement between…
Q: McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03.)…
A: Calculation with proper explanation given in next sheet.
Q: Company X sells on a 3/10, net 90, basis. Company Y buys goods with an invoice of $2,500. a. How…
A: Calculation of Deduction Amount, Extra Credit Days and Effective Annual Rate: Excel Spreadsheet:…
Q: Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays…
A: Accounts receivables refer to the legal claims or money a company will get after the customer pays…
Q: McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…
A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1 = (1 + 0.0975/12)^12…
Q: KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Rose Company currently uses maximum trade credit by not taking discounts on its purchases. The…
A: Trade credit is offered to the customers in order to encourage them for the early cash payment. Some…
Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…
A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…
Q: Medwig Corporation has a DSO of 17 days. The company averages $7,750 in sales each day (all…
A: Accounts receivable are the people who owe the company. In simple words these are the people who…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: the line of credit is a pre-approved limit offered by financial institutions, banks, etc, you can…
Q: Snider Industries sells on terms of 2/10, net 45. Total sales for the year are$1,500,000. Thirty…
A: Part (a): Calculation of days' sales outstanding: Answer: Average amount of receivables is 38 days
Q: HBC Inc. buys on terms of 2/10, net 30 days. It does not take discounts, and it typically pays 30…
A: The question is related to the Free trade Credit. The details are given. First we will calculate…
Q: A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts…
A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…
Q: A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period…
A: Average collection period = 3 months Discount = 3.5% Receivables Turnover = 12months / Average…
Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…
A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: Given, Cock security system has $37500 line of credit Annual percentage rate = 4% october pmt -…
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Cooley…
A: Factoring of accounts receivable: In general business, accounts receivable are sold out to another…
Q: Rose Company currently uses maximum trade credit by not taking discounts on its purchases. The…
A: Given, Net purchases per day are P11,760 Interest rate is 10% Discount rate is 2%
Q: McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500; 40% of…
A: Note: This question has five subparts. The first three have been answered below.
Q: Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The…
A: Average Collection period = Average receivables x 365 / Credit salesHence, average receivables =…
Q: MULTIPLE CHOICE Milch Corporation sells on terms of net/90. Their accounts receivable are on…
A: The average investment in receivables can be estimated with the help of days sales outstanding…
Q: McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to…
A: a) Computation of trade credit who do not take the discount and pay in 40 days is as follows:Nominal…
Q: Kirk Development buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…
A: The calculation is:
Q: McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: A firm sells its accounts receivables to a factor at a 1.7% discount. The average collection period…
A: Effective annual interest rate formula: effective annual interest rate =1+rnn-1where,r=discount…
Q: La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which…
A: Accounts receivables are the current assets of the company which arises due to sale made on credit…
Q: Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43…
A: Calculate the cash conversion cycle as follows: Cash conversion cycle = Inventory period +…
Q: Robie Co. operates 365 days in a year. Its receivable on the average remain uncollected for 73 days.…
A: Average collection period means the average time period with in which the debtor makes the payment.
Q: Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…
A: The process by which financial transactions of the business are recorded and communicated with the…
Q: FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date.…
A: Trade credit means purchasing of trade goods on credit basis. If there is any discount period, then…
Q: ibu Corporation has annual credit sales of $35 million. The s 37 days. What is the average…
A: The average accounts receivable represents the average amount of trade receivables on hand during a…
Q: ABC Corp. has net credit sales of P1,440,000 yearly with credit terms of n/30, which is also the…
A: Formula: Accounts receivable turnover = Net credit sales / Average accounts receivable Average…
Q: nternational Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and…
A: The calculation of gross and discounted sales has been made as follows: Gross Sales per day =Total…
Q: The Zocco Corporation has an inventory conversion period of 60 days, an average of collection period…
A: Cash conversion cycle means amount of time taken to convert raw materials or inventory of the…
Q: If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and…
A: Average Collection Period helps to know the trend of collection of dues. The formula of Average…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: Here, Line of Credit is $37,500 Prime Rate is 8% Annual Percentage Rate is: Annual Percentage Rate =…
Q: Charming Paper Company sells to the 12 accounts listed here. Account Receivable Balance…
A: Account balances less than 30 days or less are 60,800 78300 30400 292000 Account balances…
Q: McEwan Industries sells on terms of 3/10, net 30. Total salesfor the year are $1,921,000; 40% of the…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: Given: The cook security systems having the value of $37,500 with the annual percentage rate is 4%.…
Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…
A: The average collection period is an accounting metric used to represent the average number of days…
Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…
A:
Q: The Malibu Corporation has annual credit sales of $28 million. The average collection period is 30…
A: Day sales in receivables= 365/receivables turnover 30 =365/ receivables turnover receivables…
Q: a. If the balance in accounts receivable at the end of 1991 was $500,000 and $750 million , how long…
A: This can be arrived at by using average collection period (ACP) formula. It measures the average…
Q: Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate…
A: A line of credit (LOC) is a set amount of money that may be borrowed at any time.A line of credit…
Salma Corporation sells on terms of net/90. Their
choose the letter of correct answer
a. P44,444.00
b. P144,444.00
c. P224,444.00
d. P244,444.00
e. P344,444.00
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Solved in 3 steps
- Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes discounts. What is the average amount of accounts payable net of discounts? (Assume the $3.65 million of purchases is net of discounts—that is, gross purchases are $3,724,489.80, discounts are $74,489.80, and net purchases are $3.65 million.) Is there a cost of the trade credit the firm uses? If the firm did not take discounts but did pay on the due date, what would be its average payables and the cost of this nonfree trade credit? What would be the firm’s cost of not taking discounts if it could stretch its payments to 40 days?Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?MULTIPLE CHOICE Milch Corporation sells on terms of net/90. Their accounts receivable are on average 20 days past due. If annual credit sales are P650,000, what is the company’s average investment in accounts receivable? *A. P168,611.11B. P178,611.11C. P188,611.11D. P244,444.00E. P198,611.11
- The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past due. If annual credit sales are $6 million, what is the company's balance sheet amount in accounts receivable? Multiple Choice O $569,589.04 O $515,342.47 O $279,452.05Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays on the 20th day and take discounts while the rest pay on the due date. What is the average amount of accounts receivable? (Use 360-day year) a. 16,000 b. 36,667 c. 26,667 d. 12,000If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and annual net credit sales of 11,513,000, what is accounts receivable for Vabasa? Enter your answer as a whale number rounded to 0 decimal places, but do not include a dollar sign or any commas in your answer. For example, enter $4,392,118.9342 as 4392119. Your Answer: Answer
- choose the letter of the correct answer Log Company’s credit sales are P300,000, and the collection period is 90 days. Cost is 70 percent of selling price. Determine Log's average investment in accounts receivable. a. P32,500.00b. P42,500.00c. P52,500.00d. P62,500.00e. P72,500.00Choose the letter of answer and provide solution A firm has total annual sales (all credit) of P25,000.00 and accounts receivable of P8,000.00. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P6,000.00? *a. 87.6 daysb. 97.6 daysc. 107.6 daysd. 102.5 dayse. 105.8 daysWhat is the APR if the monthly rate of interest a credit card company charges on outstanding balances is 1.62%? Select one: O a. APR =(1.0162)^12) -1 = 0.2127, and APR = 21.27% O b. APR = ((1.0162)^7) - 1 = 0.1191, and APR = 11.91% O C. APR =((1.0162)^52) - 1 = 1.3063, and APR = 130.63%
- A firm has total annual sales (all credit) of P1,200,000 and accounts receivable of P500,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P300,000? choose the letter of the correct answera. 51.3 daysb. 61.3 daysc. 71.3 daysd. 81.3 dayse. 91.3 daysd) Inter accounts national Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and receivable averaged 547,500. Half of International’s customers paid on the 15th day and took discounts. What are the nominal and effective costs of trade credit to International’s non-discount customers? (Hint: Calculate sales/day based on a 360-day year, then calculate average receivables of discount customers and then find the DSO for the non-discount customers.Choose the correct letter and provide solution A firm has total annual sales (all credit) of P100,000.00 and accounts receivable of P20,000.00. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P15,000.00? *a. 22.8 daysb. 34.8 daysc. 44.8 daysd. 52.8 dayse. 54.8 days
