Con-yay & JZ Incorporated has an average collection period (accounts receivable/daily credit sales) of 74 days. What is the accounts receivable turnover ratio (credit sales/accounts receivable) for Smart and Smiley? You may use a 360-day year. a. 4.86 b. 2.47 c. 2.66 d. 1.68
Q: A 15 year $5000 par value bond has a 12% semiannual coupon and a nominal yield to maturity of 8.5%.…
A: The objective of the question is to calculate the price of a bond given its par value, coupon rate,…
Q: Real and nominal rates interest Zane Perelli currently has $96 that he can spend today on socks…
A: Real rate of interest defines the return in actual is earned by the investors through providing…
Q: 1. The interest rate is 8.7% p.a. effective and the rate of inflation is 1% p.a. Compute the real…
A: answer is in the explanation sectionExplanation:1. Real Rate of Interest = Nominal Interest Rate -…
Q: (Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of…
A: An equity share is a capital market security which offers the ownership interest in the company and…
Q: With its current leverage, Impi Corporation will have net income next year of $5.0 million. If…
A: The concept of the corporate finance interest tax shield. The tax benefits a business receives from…
Q: a constant 15 percent growth rate thereafter. What is the dividend yield and capital gains yield for…
A: The dividend yield is similar to the interest you receive on savings accounts, but you invest in…
Q: Luoxana contributed $5,000.00 every year into an RRSP for 18 years. What nominal annual rate of…
A: Registered retirement savings plan refers to a plan which is registered with government and periodic…
Q: Marissa Manufacturing is presented with the following two mutually exclusive projects. The required…
A: IRR refers to Internal Rate of Return.It is the return actually earned by the project.IRR Can be…
Q: A business has a cost of equity of 9.5 percent and a pretax cost of debt of 5.4 percent. The debt -…
A: The cost of capital is the return rate a company must pay to its investors in order to attract…
Q: Scenario Probability Severe recession Mild recession 0.05 Stock Fund Rate of Return -41% Bond Fund…
A: Here, Stock Fund Bond FundScenarioProbabilityRate of ReturnRate of ReturnSevere…
Q: Wontaby Ltd. is extending its credit terms from 30 to 45 days. Sales are expected to increase from…
A: The additional financial requirement will be multiplied by the cost of acquiring additional funds…
Q: You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the…
A: Mortgage Amortization Schedule with Early Payment (Excel Spreadsheet)This spreadsheet calculates…
Q: Current Attempt in Progress The Cullumber Bank requires borrowers to keep an 10 percent compensating…
A: Amount to be borrowed = $480,000Compensating balance = 10%Stated APR = 8%
Q: A wind turbine will cost $2 million to build and install. The PVCCATS works out to 25% of the…
A: The concept here involves calculating the Present Value (PV) of an Operating Cash Flow (OCF) annuity…
Q: Suppose a seven-year, $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading with a…
A: Par value = $1,000Period =7 yearsCoupon rate = 7.90%Yeild to maturity = 6.71%Coupon is payable…
Q: Amalgamated Industries' preferred stock currently sells for 28.34 per share and pays an annual…
A: Calculating an investment's compound annual rate of return, particularly when considering preferred…
Q: You decide to enter a short-selling strategy with 100 shares. The current price is $70, initial…
A: The objective of this question is to determine the price that would trigger a maintenance call in a…
Q: Try Yourself - Question 2 What annual rate is required for an investment to grow by 33% in 5 years…
A: The objective of the question is to find out the annual interest rate required for an investment to…
Q: Baird Golf has decided to sell a new line of golf clubs. The clubs will sell for $715 per set and…
A: Selling price (New) = $715Variable cost = $385Units sold = 75000Number of years = 7Cost of equipment…
Q: mmarly >> All Bookmarks Problem 6-42 (Algorithmic) (LO. 3) Henrietta, the owner of a very successful…
A: ## Problem 6-42 (Algorithmic)**a. Hotel Chain Expansion Investigation**Since Henrietta decided not…
Q: You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no…
A: Risk management involves recognizing and reducing risks that could affect goals. It includes…
Q: Bond A is a premium bond making semiannual payments. The bond pays a coupon rate of 8.6 percent, has…
A: The bond price is equivalent to the total amount of money you must pay now in order to get all the…
Q: What is the FCFF of a firm with revenues of $229 million, operating profit margin of 47%, tax rate…
A: Free cash flow (FCF) is a financial metric that represents the cash a company generates from its…
Q: Carla Vista Roofing is faced with a decision. The company relies very heavily on the use of its…
A: Incremental analysis refers to the tool which is used for taking decisions for determining the cost…
Q: Staton-Smith Software is a new start-up company and will not pay dividends for the first five years…
A: Dividend Discount Model refers to the process of discounting the dividends received over the period…
Q: Estimate the RAROC on a $1,000,000 loan application by a client in the construction industry. Using…
A: The objective of the question is to calculate the Risk-Adjusted Return on Capital (RAROC) for a loan…
Q: The Carla Vista Market, Inc., balance sheet for the fiscal year ending September 25, 2016 included…
A: NWC refers to the measure of liquidity that the company has to cover for its daily operations. It is…
Q: Ward Corp. is expected to have a free cash flow of $1,200,000 next year. Cas flows are expected to…
A: Share price refers to the price per share prevailing in the market or investor needs to pay for…
Q: Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual…
A: Maturity10 yearsPar value1000Coupon rate5.90%Payment modesemi annual
Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…
A: Periodic deposits in the given case can be the annual payments or annual deposits that can be made…
Q: Forecasting financing needs) Beason Manufacturing forecasts its sales next year to be $5.4 million…
A: Net income refers to an amount that is being earned by the company from its business after deducting…
Q: On January 1 Tab Company issued $1 million of ten-year 8% bonds at 95% of face amount. The bond…
A: Market interest rate refers to the rate of interest which is charged on the bond amount by the…
Q: A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500…
A: The discounted payback period is a financial metric used to evaluate the time it takes for an…
Q: Suppose that you purchased a Ba rated $1000 annual coupon bond with an 8.9% coupon rate and a…
A: A bond is a fixed-income security that allows the investor access to the debt market through public…
Q: Find the equated date at which the original payments are equivalent to the single payment. State…
A: The objective of the question is to find the time at which the original payments are equivalent to…
Q: Given the following information, if the firm wants to grow sales by 70% next year, and it is…
A:
Q: The current price of XYZ stock is $103. The seven month forward price for XYZ stock is $106. Assume…
A: The objective of the question is to calculate the continuously compounded interest rate given the…
Q: Simulate your own multinational corporation (MNC). Justify the form of your own MNC, based in the…
A: A Strategic Perspective on Establishing a Multinational Corporation (MNC) in the…
Q: An analyst gathered the following information about the company: 2021 net sales R10 000 000 2021 net…
A: 2021 net sales = 10,000,000Sales growth (for 2022) = -15%/100 = -0.15 in decimalsExpected profit…
Q: Which of the following categories of e-business would an EDI (electronic data interchange) system…
A: EDI is a intercompany communication of business documents in a standard format. It replaces…
Q: Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project:…
A: Revenue:It is the amount of money generated by the firm from its business activities.It is also…
Q: Problem 10-10 Calculating Project NPV [LO1] Esfandairi Enterprises is considering a new three-year…
A: NPV is the difference between the projected value of cash flow and initial investment and it must be…
Q: You borrow $155,000; the annual loan payments are $12, 490.89 for 30 years. What interes rate are…
A: Borrowed amount = $155,000Annual loan payment = $12,490.89Number of years = 30 Years
Q: Briefly explain the following life insurance contractual provisions. Suicide clause Grace period…
A: The objective of this question is to understand the meaning and implications of three specific…
Q: Which of the following can be facilitated through your brokerage firm Providing investment…
A: The question is asking about the services that can be provided by a brokerage firm. Brokerage firms…
Q: Suppose a five-year, $1,000 bond with annual coupons has a price of $897.85 and a yield to maturity…
A: The coupon rate is comparable to an annual fixed payment bondholders get in exchange for their…
Q: Ibrahim has a mortgage of $429,000 through his bank for property purchased. The loan is repaid by…
A: Any sum borrowed to meet any specific personal or business needs is regarded as a mortgage/loan. The…
Q: Your firm is contemplating the purchase of a new $ 535,000 computer-based order entry system. The…
A: Internal rate of return(IRR) is the discount rate that makes NPV of investment zero. IRR can be…
Q: Gregory is an analyst at a wealth management firm. One of his clients holds a $7,500 portfolio that…
A: Portfolio:A portfolio is an investment in 2 or more assets to diversify risk. The efficient…
Q: Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at 24 percent per…
A: The DDM refers to the method of calculating the value of stock based on the future dividends the…
Step by step
Solved in 3 steps
- Question 8 Calculate the average collection period for T&K Inc. if its accounts receivables were $600 at the beginning of a year in which the firm generated $9,125 of sales? O A. 67 days OB. 18 days OC. 24 days OD. 49 daysQuestion 13 Calculate the average collection period for Roman Inc. if its accounts receivables were $550 at the beginning of a year in which the firm generated $3,000 of sales? OA 61 days OB. 73 days OC. 60 days OD.67 daysItem 2 of 25 Sixty percent of Jesse's annual sales of P900,000 is on credit. If its year-end receivables turnover is 4.5, what is the average collection period and the year- end receivables, respectively (assume a 365-day year)? Select the correct response: 73 days and P108,000. 81 days and P200,000. 73 days and P120,000. 81 days and P120,000.
- QUESTION 12 A credit card statement shows the following activity Compute the finance charge if 1.5% is charged on the average daily balance. 6/10/2014 Billing Date $157.35 6/20/2014 Payment 6/25/2014 Purchase $ (45.00) $ 52.20 7/2/2014 On-line Purchase $69.00US Kimmel, Financial Accounting, 8e Helo I System Announcements CALCULATOR PRINTER VERSION 4BACK NEXT Multiple Choice Question 187 Pharoah Company had net credit sales during the year of $1407600 and cost of goods sold of $424000. The balance in accounts receivable at the beginning of the year was $115200 and at the end of the year was $190800. What was the accounts receivable turnover? О 6.00 7.90 О 1.20 O 9.20 Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWERQUESTION 6 This year your company has $34 million of credit sales and average receivables of $7 million. Your company factor receivables by discounting 1%. What is the APR of factoring the receivables? 1.01% 1.00% 4.91% 5.00% 4.80%
- .3 Question 4, 8.3.33 > Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $220. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 20% on the account and that the billing date is August 1st. The finance charge for the month of August is $ (Round to the nearest cent as needed.) Date August 3 Transaction Made payment of $86 August 10 Charged $140 for hiking boots August 19 Charged $18 for gasoline August 25 Charged $34 for restaurant meal SaveQUESTION 11 The credit policy of Home Living Stores is 2/10 net 30. At present 25% of customers take advantage of the discount, 55% pay within the net period, and the remainder pay within 42 days of invoice. What will the effect on receivables be if all customers take the discount? cannot be determined lower than the present level higher than the present level no change from the present levelHh2. Net credit sales for Turner Company are $200,000 for the year and the average accounts receivable balance is $20,000. What is the company's average collection period? (Use 365 days in a year.) Multiple Choice 5 days 548 days 54.8 days 36.5 days
- Outstanding Deposits Date Check Number Date Amount Junouy s 150.190 2000l 287.50 13.50 15 .15 Total to 2.75 $314.50 2 A coshier had credit card sales of8752.40 over the last week, and issued refunds in the amoun If the fee per transaction in 2.5%, how much is owed, what are the net credit sales?2016 2017 2018 2019 1. What this ratio tells us about? Number of days of Accounts receivable 750 £ 751 754 £ 765 receivables Sales on credit /365 17 £ 2. Do you like the situation in this company? 15 19 21 50.00 days 44.18 days 39.68 days 36.43 days 3. What are your recommendationd to improve the situation?2021 2022 2023 Year Forsen Computing Net Credit Sales $1,557,200 1,855,310 2,165,170 Ending Accounts Receivable $398,000 414,400 500,780 1. Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2022 and 2023 (round answers to two decimal places) What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days' sales in receivables ratio is 85 days? 94% See 2 Edito