Medwig Corporation has a DSO of 25 days. The company averages $7,750 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar.

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Variables in the question:Balance=$700Rate(r)=17%Payment=$650Assume 365 days in a year

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: Need help please provide answer

A: Operating cycle = ((Inventory * 365 days) / Cost of goods sold) + ((Accounts Receivable * 365 days)…

Q: National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent…

A: Sales = P 900000 35% pay on 10th day and 65% pay on 45th day. Let's find the days sales outstanding.

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: To calculate the monthly finance charge using different methods, let's consider the given…

Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…

A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…

Q: be received and recorded, and that the month is 30 days long. (Round your answers to the nearest…

A: Finance charges are a way for a lender to get compensated for supplying cash or giving credit to a…

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: Grunewald Industries sells on terms of 1/10, net 40. Gross sales last year were $4,453,000 and…

A: According to the question given, we need to compute the nominal and effective costs of trade credit…

Q: Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were…

A: Days Sales outstanding refers to the number of days a company/firm takes to collect payment from its…

Q: Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000,…

A: FIRM OPERATING CYCLE Firm Operating Cycle is the Total of Account Receivable Collection Period &…

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: HAPPY Company makes credit sales of P1,800,000 annually. The average age of accounts receivable is…

A: Financing Charges: It refers to those charges which a borrower pays to the lender for using his…

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: A firm has no cash sales (all sales are on credit and are collected 28 days after the sale). If the…

A: Average collection period is one of efficiency ratio which is used in business. This shows time…

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: Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash…

A: Total sales = P1,200,000 Cash sales = 40%

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: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Information Provided: Balance = $4000 Rate = 16% Payment = $2500 Days it take for payment = 10 Days

Q: Receivables Investment Medwig Corporation has a DSO of 37 days. The company averages $9,750 in…

A: Accounts Receivables are the money due towards customers but not yet paid on account of goods sold…

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: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Given information : Time it takes for payment = 10 days Length of month = 30 days Balance = $475…

Q: You agree to make 36 deposits of $600 at the beginning of each month into a bank account. At the end…

A: An annuity is a series of fixed amount cash flows at equal time intervals for a specific duration.…

Q: nth. Round all values to the nearest cent. A. What is the finance charge for this first month? B.…

A: finance fee is the interest  pay on a loan you owe,If you carry a debt from one payment month to…

Q: Medwig Corporation has a DSO of 21 days. The company averages $9,250 in sales each day (all…

A: Ratio analysis used identify the business performance of the company. It is used to measure…

Q: On average your firm sells $33,100 of items on credit each day. Your average inventory period is 35…

A: Answer:- Operating cycle meaning:- The company's operational efficiency is gauged by the operating…

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: McDowell Industries  sells on terms of 3/10, net 30. Total sales for the year are $912,500;  40% of…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Baker Industries has a 45 day accounts receivable period. The estimated quarterly sales for this…

A: Revenues: It represents the amount generated or produced from the business's normal operations. It…

Q: The Jeremy Flores Club has annual revenue of EUR 7 million and all sales are on account. Good credit…

A: 1. Max account receivables = ACP×sales365 =30×7 million365=EUR 575,342

Q: If a firm has sales of $22,242,000 a year, and the average collection period for the industry is 35…

A: Given that;Yearly sales is $22,242,000Average collection period for the industry is 35 days and the…

Q: The Coffee Hut has an ACP of 30 days, and its annual sales are $5 million. What is its account…

A: In the given case, we have provided the average collection period (ACP), annual sales . To calculate…

Q: calculate the monthly finance charge for the credit card transaction. Know that it takes 10 days for…

A: There are various method in which the interest on credit card is charges such as previous balance,…

Q: Greene Sisters has a DSO of 20 days. The company's average daily sales are $30,000. What is the…

A: Formula: Accounts receivable turnover ratio = 365 days / Days sales outstanding. Division of days…

Q: ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365…

A: Question is based on the concept of Financial ratios

Q: McEwan Industries sells on terms of 3/10, net 20. Total sales for the year are $971,000; 40% of the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all…

A: Effective rate of interest is the real return on savings or any interest paying investment when…

Q: Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000,…

A: Introduction: The cash cycle is the amount of time it takes a business to convert raw resources into…

Receivables Management