Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 2/15, net 35. Based on experience, 75 percent of all customers will take the discount. What is the average collection period for the company? If the company sells 2,200 forecasts every month at a price of $900 each, what is its average balance sheet amount in accounts receivable?

Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 2/15, net 35. Based on experience, 75 percent of all customers will take the discount. What is the average collection period for the company? If the company sells 2,200 forecasts every month at a price of $900 each, what is its average balance sheet amount in accounts receivable?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit sales for the year are $567,920. What is the days sales in receivables ratio for 2018 (rounded to the nearest whole number)? A. 190 days B. 109 days C. 110 days D. 101 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?
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 50. Based on experience, 75 percent of all customers will take the discount. a. What is the average collection period? Average collection period _________________days b. If the company sells 1,380 forecasts every month at a price of $2,480 each, what is its average daily balance sheet amount in accounts receivable? Average accounts receivable ____________
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net 50. Based on experience, 80 percent of all customers will take the discount. a. What is the average collection period? (Do not round intermediate calculations and round your answer to 2 decimal places, 32.16.) b. If the company sells 1,340 forecasts every month at a price of $2,440 each, what is its average daily balance sheet amount in accounts receivable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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 a price of $2,470 each, what is its average daily balance sheet amount in accounts receivable? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.