1. An aging schedule is a classification of the total accounts payable balance into groupings by time outstanding. It can provide a means of determining which suppliers are being paid on time, which are not, and how far bills are behind the payment date. Neira's Natural Pharmaceutical Products owes its four major suppliers a total of $4,000,000. An accounts payable aging schedule is shown in the table below. Age of Account (days) 0- 30 Customer Total Due 61 - 90 $100,000 31 - 60 More than 90 Aaron Corp. $500,000 $200,000 $225,000 Brendan Inc. (X) $75,000 $50,000 $350,000 $650,000 Caroline Co. $700,000 $40,000 $10,000 Daniel LLC $175,000 $75,000 Total $4,000,000 (a) The amount that Neira's owes to Brendan Inc. in the 0-30 days due range is $ - (Hint: Find the value of X.) Give your answer to the nearest whole dollar. Do not include comma separators in your answer. (b) The total amount that Neira's owes to its largest supplier is $ Give your answer to the nearest whole dollar. Do not include comma separators in your answer. (c) If the usual credit terms extended to Neira's are "payment due in full in 60 days" then the percentage of the firm's accounts payable that are past due is %. Give your answer as a percentage to 2 decimal places. Do not include the "%" sign in your answer.
1. An aging schedule is a classification of the total accounts payable balance into groupings by time outstanding. It can provide a means of determining which suppliers are being paid on time, which are not, and how far bills are behind the payment date. Neira's Natural Pharmaceutical Products owes its four major suppliers a total of $4,000,000. An accounts payable aging schedule is shown in the table below. Age of Account (days) 0- 30 Customer Total Due 61 - 90 $100,000 31 - 60 More than 90 Aaron Corp. $500,000 $200,000 $225,000 Brendan Inc. (X) $75,000 $50,000 $350,000 $650,000 Caroline Co. $700,000 $40,000 $10,000 Daniel LLC $175,000 $75,000 Total $4,000,000 (a) The amount that Neira's owes to Brendan Inc. in the 0-30 days due range is $ - (Hint: Find the value of X.) Give your answer to the nearest whole dollar. Do not include comma separators in your answer. (b) The total amount that Neira's owes to its largest supplier is $ Give your answer to the nearest whole dollar. Do not include comma separators in your answer. (c) If the usual credit terms extended to Neira's are "payment due in full in 60 days" then the percentage of the firm's accounts payable that are past due is %. Give your answer as a percentage to 2 decimal places. Do not include the "%" sign in your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please use three of my questions for this problem.
Transcribed Image Text:1. An aging schedule is a classification of the total accounts payable balance into groupings by time outstanding. It can provide a means of determining which
suppliers are being paid on time, which are not, and how far bills are behind the payment date.
Neira's Natural Pharmaceutical Products owes its four major suppliers a total of $4,000,000. An accounts payable aging schedule is shown in the table below.
Age of Account (days)
Customer
Total Due
0 - 30
31 - 60
61 - 90
More than 90
$500,000
(X)
Aaron Corp.
$200,000
$100,000
$225,000
$350,000
Brendan Inc.
$75,000
$50,000
Caroline Co.
$700,000
$40,000
$10,000
Daniel LLC
$650,000
$175,000
$75,000
Total
$4,000,000
(a) The amount that Neira's owes to Brendan Inc. in the 0-30 days due range is $
(Hint: Find the value of X.) Give your answer to the
nearest whole dollar. Do not include comma separators in your answer.
(b) The total amount that Neira's owes to its largest supplier is $
Give your answer to the nearest whole dollar. Do not include comma
separators in your answer.
(c) If the usual credit terms extended to Neira's are "payment due in full in 60 days" then the percentage of the firm's accounts payable that are past due is
%. Give your answer as a percentage to 2 decimal places. Do not include the "%" sign in your answer.
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