A business currently has a DSO of 38 days on annual sales of $2.4M. If the company forecasts next year's sales to be $3.2M and assumes DSO will remain constant at 38 days, calculate the expected increase in accounts receivable.
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- Your business requests a 3-month loan for $500,000. What will be the interest paid at the end of the term if the business risk percentage is assessed at 2.0% and LIBOR is at 2.1%?Please provide answer the financial accounting questionA company borrowed at 3.27% compounded annually to purchase equipment, agreeing to make payments of $2,970 at the end of every three months for 15 payments. (a) What is the equivalent cash price of the equipment? (b) How much will be owed at the end of two years? (c) How much of the principal will be repaid within the first two years? (d) How much interest is paid during the first two years?
- Until recently, Augean Cleaning Products sold its products on terms of net 68, with an average collection period of 83 days. In an attempt to induce customers to pay more promptly, it has changed its terms to 3/10, EOM, net 68. Assume current sales of $100, costs of $88, an interest rate of 11%, and no defaults. Assume each month has 30 days and a year has 360 days. The initial effect of the changed terms is as follows: Average Collection Periods (Days) Percent of Sales with Cash Discount Cash Discount Net 68 38a 88 aSome customers deduct the cash discount even though they pay after the specified date. a. Calculate the NPV per $100 of sales based on the original terms. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Assume that sales volume is unchanged and there are no defaults. Calculate the NPV per $100 of sales based on the revised terms. (Assume all sales occur in the middle of the month. Do not round intermediate…S Until recently, Augean Cleaning Products sold its products on terms of net 69, with an average collection period of 84 days. In an attempt to induce customers to pay more promptly, it has changed its terms to 2/10, EOM, net 69. Assume current sales of $100, costs of $89, an interest rate of 10%, and no defaults. Assume each month has 30 days and a year has 360 days. The initial effect of the changed terms is as follows: Percent of Sales with Cash Discount 69 Average Collection Periods (Days) Cash Discount Net 39a 89 aSome customers deduct the cash discount even though they pay after the specified date. a. Calculate the NPV per $100 of sales based on the original terms. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Assume that sales volume is unchanged and there are no defaults. Calculate the NPV per $100 of sales based on the revised terms. Note: Assume all sales occur in the middle of the month. Do round intermediate calculations. Round your…Until recently, Augean Cleaning Products sold its products on terms of net 54, with an average collection period of 69 days. In an attempt to induce customers to pay more promptly, it has changed its terms to 1/10, EOM, net 54. Assume current sales of $100, costs of $74, an interest rate of 13%, and no defaults. Assume each month has 30 days and a year has 360 days. The initial effect of the changed terms is as follows: Average Collection Periods (Days) Cash Discount Percent of Sales with Cash Discount Net 54 24a 74 asome customers deduct the cash discount even though they pay after the specified date. a. Calculate the NPV per $100 of sales based on the original terms. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value b. Assume that sales volume is unchanged and there are no defaults. Calculate the NPV per $100 of sales based on the revised terms. (Assume all sales occur in the middle of the month. Do not round intermediate calculations.…
- Please provide solution this financial accounting questionA company borrowed at 4.38% compounded semi-annually to purchase equipment, agreeing to make payments of $2,760 at the end of every three months for 16 payments. (a) What is the equivalent cash price of the equipment? (b) How much will be owed at the end of two years? (c) How much of the principal will be repaid within the first two years? (d) How much interest is paid during the first two years?Ore
- On December 1, a company borrowed Php 100,000.00 at 12% per year. The interest will be paid quarterly, with the first payment due on March 1. What should the company report on its Income Statement for December?Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.)a. 30%b. 304%c. 3%d. 87%e. 156%Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is the annual percentage rate (APR) if interest is paid to the lender in annually? semiannually? quarterly?
