QUESTION 3 A firm has sales of $4.5 million, and 12 percent of the sales are for cash. The year-end accounts receivable balance is $575,000. What is the average collection period? (Use a 360-day year), 26.84 days 45.69 days 37.95 days 52.27 days 17.29 days

QUESTION 3 A firm has sales of $4.5 million, and 12 percent of the sales are for cash. The year-end accounts receivable balance is $575,000. What is the average collection period? (Use a 360-day year), 26.84 days 45.69 days 37.95 days 52.27 days 17.29 days

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 50BE: Accounts Receivable Balance XYZ Corp sells widgets to consumers for $20 each. Its beginning accounts...

See similar textbooks

Related questions

Q: Wilma borrows $10,000 from "Jaw Breaker Joe" and promises to repay Joe a total of $10,500 in one…

A: Present Value = pv = $10,000 Future value = fv = $10,500 Time = t = 1 / 12

Q: A stock has a current price $100 and will pay a dividend $2 at the end of second month. The…

A: To model the stock price dynamics using a four-period binomial tree, we need to break the stock into…

Q: a) At the end of its financial year 2021, an analyst made the following forecast for Next plc for…

A: Enterprise value is the value of business or firm as a whole including value of debt and equity and…

Q: You have $164,000 in an account today paying 2.8% interest. What are the monthly withdrawals you can…

A: The annuity refers to the series of payments made periodically in exchange for a lump sum payment.…

Q: Theresa and Raul purchased a house for $200,000. They made a down payment of 15% of the purchase…

A: Here, Particulars Values Purchase price $ 2,00,000.00 Down payment percentage 15.00% Down…

Q: An S corporation earns $6.30 per share before taxes. The corporate tax rate is 35%, the personal tax…

A: In S corporation the income is directly transferred to the shareholders of the company and there is…

Q: XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend…

A: The average return of an investment portfolio over a certain time period is determined using the…

Q: The common stock of Royal Ranch House is selling for $19.70. The firm pays dividends that are…

A: Data given: Price of stock (P)=$19.70 Growth rate (g)=4.10% N= 8 years Required: Estimated price…

Q: Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and…

A: The value of a share represents the current worth to the buyer and seller & is determined by the…

Q: On April 18, 2019, the video conferencing company, Zoom, completed its IPO on the Nasdaq. Zoom sold…

A: IPO stands for Initial Public Offering, which is the process through which a company offers its…

Q: QUESTION TWO a) The fair value of a bond is based on the present value of expected future cash…

A: Bond valuation is the technique of determining theoretical fair price of a Bond. Fair Value of bond…

Q: The Morrit Corporation has $510,000 of debt outstanding, and it pays an interest rate of 8%…

A: Time Interest Earned(TIE) Ratio measures Corporation's ability to meet its debt obligations from…

Q: You wish to retire with an annuity that will pay you $30,000 for the next 25 years and then $50,000…

A: An investment known as an annuity offers a stream of payments in return for a one-time lump amount.

Q: "Consider the following 4 options on TSLA: (1) 1-year 30-delta call, (2) 1-year 30-delta put, (3)…

A: Delta represents a measure for analyzing risk and is primarily used by traders. It shows the change…

Q: (Related to Checkpoint 5.6) (Solving for) At what annual interest rate, compounded annually, would…

A: Future Value is that value which includes the interest earned and initial invested amount. It is…

Q: Problem 11-1 Stock Market History (L01) Use the data in the tables below to answer the following…

A: Businesses examine possible significant projects or expenditures using the capital budgeting…

Q: A delivery company is looking at converting their fleet of gasoline vans to electric vehiclesThe all…

A: Net present value is the modern method of capital budgeting that is used to determine the present…

Q: By using a graphic organizer of your choice, create a visual graphic that visually explains your…

A: Financial distress and bankruptcy of the company refers to the calculation of variables like cash…

Q: Mitch and Bill are both age 75. When Mitch was 23 years old, he began depositing $1300 per year…

A: This is based on TVM (time value of money) concept. Money deposited in an account today grows in…

Q: Flowers by Irene Inc. is a small company and is considering a project that will require $700,000 in…

A: Assets required = $700,000 Tax rate = 25% Project financing = 100% equity EBIT = $150,000

Q: Bankrate.com reported on a shocking statistic: only 55% of workers participate in their company's…

A: Here, Required Amount (FV) is $350,000 Interest Rate (r) is 4% compounded annually Time Period (n)…

Q: You have a 25-year $400,000 mortgage with a 3.5% rate of interest (compounded monthly) that you make…

A: As per instructions, the solution will be provided on TI BA II Plus calculator. First, we need to…

Q: Arrange the following items in proper balance sheet presentation: (Amounts to be deducted should be…

A: Balance sheet: Balance sheet is used to represent the financial position of the company at a…

Q: Finance what is cost of equity as an effective annual rate given that they pay semi annually,…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: Crane's Custom Construction Company is considering three new projects, each requiring an equipment…

A: Npv is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: You run a mail-order firm, selling upscale clothing. You are considering replacing your manual…

A: NPV is also known Net present value. It is a capital budgeting techniques which help in decision…

Q: A firm is considering Projects S and L, whose cash flows are shown below. These projects are…

A: Net present value and internal rate of return are the modern methods of capital budgeting that are…

Q: Amir has obtained a $250,000 mortgage. The mortgage is amortized over 25 years and the term of the…

A: Mortgage refers to the long-term loan that is taken by the individual to purchase residential…

Q: Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at…

A: Present value refers to the value of all future cash flows which are discounted at interest rate or…

Q: A $1500 treasury bond with a current yield of 5.45 that is quoted at 116.6 points. What is the…

A: Treasury Bond = $1500 Current Yield = 5.45% Quoted Point = 116.6

Q: The following bond list is from the business section of a financial newspaper on January 1, 2016.…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: following a. The IRR is the discount rate that equates the present value of a project's expected…

A: IRR internal rate of return is minimum break even rate at which cost of capital equal to rate of…

Q: Mary is to receive an annuity with 30 annual payments. The first payment of $1,000 is due…

A: No. of Payments = 30 Payments (PMT) = 1000 Interest Rate = 12% Growth Rate = -5%

Q: Advantages of mutual funds include Odiversification. professional management. Ⓒliquidity. (All of…

A: Introduction: Mutual fund-It is a type of investment that pools funds from investors and invests…

Q: y”. The product would incur a total variable cost of P18 per unit to manufacture and sell. The plant…

A: Formulas are as shown below. Breakeven point=Fixed cost+Interest expensePrice per unit-Variable…

Q: Calculate the price of a 6-month European call option on a non-dividend paying stock with a strike…

A: The formula for calculating the price of a European call option using the Black-Scholes model is as…

Q: A mutual fund sold $158 million of assets during the year and purchased $132 million in assets. If…

A: Total assets sold=$158 million Total assets purchased=$132 million Average daily balance=$496…

Q: Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are…

A: Capital budgeting provides numerous benefits to companies, including efficient resource allocation,…

Q: copy..Alyeska Services Company, a division of a major oil company, provides various services to the…

A: Turnover = Sales/Average operating assets

Q: Question 20 Which of the following is correct? When evaluating mutually exclusive investments, we…

A: This technique is used for making investments under capital budgeting for making decisions regarding…

Q: Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3…

A: The project under discussion has a 10-year duration and a number of cash flows. These cash flows…

Q: Margo borrows $400, agreeing to pay it back with 8% annual interest after 17 months. How much…

A: We need to use simple interest formula to calculate interest to be paid by Margo. Interest =…

Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…

A: Initial Fixed Assets = $2.35 million Life of Fixed Assets = 3 years Annual Sales = $1,669,000 Costs…

Q: The NPV of renting the machine is $. (Round to the nearest dollar. Enter a negative NPV as a…

A: In this question, the NPV is the PV of all costs incurring over the life of the asset. Therefore, we…

Q: Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is…

A: Present value is the current value of future value cash flows at specified interest rate. Present…

Q: Assume that NASA is allowed to select one of three commercial projects for the next space shuttle…

A: Economic value added is the firm’s economic value added by its operations. Formula for EVA =Net…

Q: A French company is considering a project in US. The project will cost $100M. The cash flows are…

A: In this question, the home currency is € and the foreign currency is $. We need to convert the cash…

Q: Following is financial information for three ventures: Venture XX Venture YY Venture ZZ…

A: Particulars Venture XX Venture YY Venture ZZ After-tax property margins 5% 25% 15% Asset…

Q: Money market securities are characterized by: 1. Maturity less than 1 year 2. Safety of the…

A: Money market securities are short term securities issued by the federal reserve bank and some of…

Q: Ivanhoe, Inc., is considering investing in a new production line for eye drops. Other than investing…

A: NPV is also known as Net present value . It is a capital budgeting techniques which help in decision…

Question

Finance

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Given value

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Accounts Receivable Balance Hart Inc. began the year with $315,700 of accounts receivable. During the year, Hart sold a considerable amount of merchandise on credit and collected $2,427,000 of its credit sales. At the end of the year, the accounts receivable balance is $16,800 lower than the beginning balance. Required: Calculate the amount of credit sales during the period.
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
Accounts Receivable Balance XYZ Corp sells widgets to consumers for $20 each. Its beginning accounts receivable balance was $24,975, and it sold 12,376 widgets throughout the year. The total cash collections for the year amounted to $217,750. Required: Calculate the ending accounts receivable balance.
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.