2 Which is more economical, a tile floor or a wood floor? Assume that the public building has a life of 50 years, no salvage value, and either floor will last the 50 years with proper maintenance. Both floors cost $1500 per year for cleaning and waxing. The interest rate is 4%. The tile floor will cost $35,000 to install. The wood floor will cost $25,000 to install. The wood floor must be refinished every 5 years for $6000. (Answer: Tile floor saves $602 per year.) Please help solve
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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