Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net 40. Based on experience, 70 percent of all customers will take the discount. Assume 365 days per year. What is the average collection period? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. If the company sells 1,370 forecasts every month at

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net…

A: Credit Term of 3/25, Net 50 shows that buyers will get discount of 3% if payment is made in 25 days…

Q: You prefer to extend credit on the assumption that you will be paid in full within 10 days of the…

A: Variables in the question:Average inventory=$ 720,000Cash sales (no credit sales)= $4,400,000…

Q: A firm with sales of $22,000,000 has inventory of $800,000. The firm has cash sales (all sales are…

A: Answer    Inventory  storage period in days =            Inventory  / cost of goods sold  × 365…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate= Prime rate +4% = 8% + 4%= 12% Interest is calculated for the number of days on…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net…

A: Credit Term of 3/20, Net 40 shows that buyers will get discount of 3% if payment is made in 20 days…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/30, net…

A: Average collection period: It is the time period that business takes to collect its payment from its…

Q: Gallant Sdn. Bhd., offers a credit period of 4 weeks.  The price and cost per unit of its product…

A: Since you have posted more than 3 sub-parts, we will provide the solution only to the first three…

Q: Cook's security system has a $37,500 line of credit, which charges an annual percentage variety of a…

A: The line of credit is a pre-approved limit offered by financial institutions or banks. You can draw…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net…

A: Given:

Q: ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the…

A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

Q: On average, it will take you sell to the firm on credit. days to receive the payments, therefore,…

A: The operating cycle of a firm is time period from the purchase of raw materials till the receipt of…

Q: The Dire Corporation has an inventory conversion period of 75 days, a receivables collection period…

A: Formula: cash conversion cycle = inventory conversion period + receivables collection period -…

Q: ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding…

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…

Q: Mavericks Cosmetics buys $3,305,717 of product (net of discounts) on terms of 5/10, net 60, and it…

A: Effective percentage cost of trade credit considers the compounding effect.Following is the formula…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Cook security systems has line of credit = $37500 Annual charge rate = 4% On October 1, Opening…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Solution- Interest rate = 6% +4% = 10%   Rate of interest charged each day = 10% / 360 = 0.02778%…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: The objective of the question is to calculate the new balance of Cook Security Systems' line of…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Variables in the question:Prime rate=8%Annual % rate charged=Prime rate +4%=8%+4%=12%Balance on…

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: Cost of commercial paper Better Effort Corporation sold an issue of 106-day commercial paper with a…

A: Commercial Paper = 106Face Value = $1.3millionProceeds = $1285230Period = 365

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: The current balance will be a function of opening balance, fresh borrowing, less repayment and the…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate applicable = Prime rate + premium Interest will be charge when the line of credit…

Q: The Branding Iron Company sells its irons for $57 apiece wholesale. Production cost is $47 per iron.…

A: The excess of cash flow's present worth over the initial cost indicates any project or investment's…

Q: Uptown Bank has granted a line of credit of $80,000 with an interest rate of 7.5 percent and a…

A: Given information: Line of credit amount is $80,000 Interest rate is 7.5% Compensating balance…

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: Until recently, Augean Cleaning Products sold its products on terms of net 69, with an average…

A: Net present value (NPV):Net present value (NPV) is a financial metric that takes the time value of…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Calculation of new balance are as follows

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net…

A: The credit policy is an important part of decision making related with the working capital in credit…

Q: Until recently, Augean Cleaning Products sold its products on terms of net 68, with an average…

A: As per the given information: Changed terms - 3/10, EOM, net 68 Current sales - $100 Cost - $88…

Q: A commercial bill with a face value of $50 000 has a current price of $49,291. This bill is trading…

A: Maturity refers to a period at which the bills or bonds retire. This is the period to which the…

Q: Aggarwal Inc. buys on terms of 2/10, net 30, and it always pays on the 30th day. The CFO calculates…

A: Costly trade credit = Purchases per day*(days credit outstanding- discount period)$350,000 =…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Prime rate :- The prime rate is the rate of interest charged by commercial banks to their most…

Q: Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/15, net…

A: Discount terms = 2/15 net 90Percent of customers taking discount = 80%Monthly forecasts sold =…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit tem 3/20, net 40.…

A: Credit Term of 3/20, Net 40 shows that buyers will get discount of 3% if payment is made in 20 days…

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net…

A: Given information is: Credit terms = 1/10, net 50 Customers take discount = 75%

Q: Black Panther Inc. buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A: Net purchases = P450,000 Terms of credit = 2/15,net 60 days

Receivables Management