A company's current revenue is $10,000,000 and accounts receivable are now $1,000,000. The sales manager estimates that sales should increase by 10% during the following year.  The accounts receivable manager estimates that the new level of accounts receivable will remain unchanged. The companies current average collection period is ____.

Q: What is the days sales outstanding? b. What is the average amount of receivables? c. What would…

A: Information Provided: Term = 4/10 Total sales = $825,500 Customers that pay on 15th day = 30%…

Q: Problem 9-10 ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume…

A: Therefore, the receivables turnover is 8.70.

Q: hat is the average number of days that the receivables of Viper Construction remain outstanding…

A: For computing the inventory tune over ratio first we have to find out the sales amount by applying…

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: MULTIPLE OPTIONS The conditions of sale for Mulch Corporation are net/90. On average, their…

A: The average investment in receivables can be estimated with the help of days sales outstanding…

Q: 22. Ernst Company experienced the following changes in selected accounts for the current year: ·…

A: Accrual sales (A) = P6,000,000 Account receivable, January 1 (B) =  P1,000,000 Account receivable,…

Q: Financial statement data for years ending December 31 for Robinhood Company follow: 20Υ9 20Υ8 Sales…

A:

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

A: Accounts Receivable Accounts receivable is considered to be one of the main sources of revenue which…

Q: a.  How long is cash typically tied up in inventories? (Show computations) b.   What would be the…

A: a)-The Inventory conversion period In the question it takes 80 days to collect the sales receivable…

Q: McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty…

A: Discounted customers=15×30%=4.5 days

Q: n accepting the position of chief executive officer and chairman of Reeves Machinery, Frank Cheney…

A: solution given The firm’s weekly payroll  $10 million cost of short-term funds 13%…

Q: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the…

A: ABC sells on credit terms of 2/10, n/30. Daily sales average = 200 units Sale price = P2500 each All…

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

A: Average amount of account Receivable = Days of sales outstanding x Sales / 360 Days of Sales…

Q: Question 2 BRADFORD Ltd is starting up a new business on 1 January 20X0 and has provided you with…

A: A cash budget is a statement showing detailed information of cash receipts in the form of cash…

Q: What would happen to average receivables if Snider toughened its collection policy with the result…

A: 1) Days Sales Outstanding = % of pay  ×  Days =30%×10 + 70%× 30 =24 days

Q: Balloon Payment Financial (BPF) has an inventory conversion period of 45 days, a receivables…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

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: 17. Zoom has a DSO of 35 days, and its annual sales are $6,500,000. What is its accounts receivable…

A: DSO = 35 days Sales = $6,500,000 Number of days in a year = 365

Q: Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,500,000. Thirty…

A: The term account receivable refers to the amount that the company is yet to receive from its…

Q: 1. Problem 15.02 (Receivables Investment) eBook Leyton Lumber Company has sales of $10 million per…

A: Days sales outstanding says that in how much time debtors of the company will pay their amount

Q: Receivables Investment Snider Industries sells on terms of 2/10, net 45. Total sales for the year…

A: Days outstanding can be calculated by weighted average days in sales.

Q: Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account…

A: Allowance for doubtful accounts balance required = Total annual sales x 2.5% = $40000000*2.5% =…

Q: Accounts Receivable Analysis A company reports the following: Sales $4,000,000 Average accounts…

A: a. Calculate the accounts receivable turnover.

Q: Needed in 20 minutes 6. Q Company has the following information on December 31, 20x1 before any…

A: Account receivables means the amount which is due from outsider for the goods or services rendered…

Q: A company reports the following: Sales $429,240 Average accounts receivable (net) 30,660 Determine…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Problem 9-15 A firm has no cash sales (all sales are on credit and are collected 28 days after the…

A: Given that;Receivables are $164,000Number of days in receivables is 28 days

Q: 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000…

A: Accounts receivable represents the revenue earned by the company but the cash for the same has not…

Q: 10. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts…

A: DSO = (average accounts receivable/total credit sales) * no. of days

Q: credit sales

A: Credit sales made are realized from customers based on entities' policies .The entities policy can…

Q: Receivables Investment Snider Industries sells on terms of 2/10, net 45. Total sales for the year…

A: 1)  Days Sales Outstanding: = 30%*10 + 70%*50 = 3 + 35 = 38 days

Q: B&B Mining has a DSO of 40 days, and its annual sales are 7,300, 000. What is its accounts…

A: Daily sales outstanding (DSO) = 40 Days Annual sales = 7,300,000 Number of days in a year = 365 Days

Q: Understanding Receivables: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: DAYS SALES OUTSTANDING Baker Brothers has a DSO of 40 days, and its annual sales are $7,300,000.…

A: Accounts receivables are part of the current assets of the company. The accounts receivables arise…

Q: Problem 12 (DSO and Accounts Receivable) James Inc. currently has P750,000 in accounts receivable,…

A: Dear  As per guidelines, I have solved one question. You will have to drop 2nd question again.

Q: On accepting the position of Chief Executive Officer and Chairman of Cameron Machinery, John Jacob…

A: Weekly payroll = $10 million Annual payroll = $10 million x 52 weeks = $520 million Cost of…

Q: wages payable 90,000 Short-term loans payable 50,000 During the year, Arnn had net sales of $2.45…

A: The computation of Current ratio, Acid test ratio, Accounts Receivables turn over ratio, Accounts…

Q: Given:account balance:$5,000;account APR=17%   please help with 5-8 5. what is the dollar amount…

A: Principal balance = $5,000 Rate of interest = 17.00% Monthly rate = 1.4167% (17.00% / 12) Number of…

Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.