Kindly help me with this General accounting questions not use chart gpt please fast given solution Assume that your company recorded total sales of$840,000 last year. The year-end receivables amount to$120,000. You are evaluating the idea of factoring thesereceivables to raise immediate cash. The factor imposes a6% discount and charges an additional 1.5% for every 10-day period the average collection period exceeds 30 days.If the $840,000 in sales were evenly distributedthroughout the year, and there is an average of $120,000in receivables outstanding, what is the average collectionperiod? Based on the terms provided, how much cashwould the company receive after factoring thereceivables?

Step 1: Define Average Collection PeriodThe Average Collection Period measures the average number of…

Answered: Assume that your company recorded total…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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Assume that the operation of your business resulted in sales of $730,000 last year. Year-end receivables are $100,000. You are considering factoring the receivables to raise cash to help finance your ventures growth. The factor imposes a 7% discount and charges an additional 1% for each expected ten-day average collection period over thirty days. A. Estimate the dollar amount you would receive from the factor for your receivables if the collection period was thirty days or less. B. Estimate the dollar amount you would receive from the factor for your receivables if the average collection period was sixty days.
General Accounting
Financial Accounting
Annual credit sales of Nadak Company total $240 million. The firm gives a 2% cash discount for payment within 10 days of the invoice date; 90% of Nadak's accounts receivable are paid within the discount period. Required: a. What is the total amount of cash discounts allowed in a year? b. Calculate the approximate annual rate of return on investment that Nadak Company's cash discount terms represent to customers who take the discount. (Assume a credit period of 30 days and 360-days year). Answer is complete but not entirely correct. $ a. Total amount b. ROI 4.32 37 million %
Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000, average inventories of $4,500, average accounts receivable of $25,000, and an average accounts payable balance of $7,000.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average inventories of $244,500, average accounts receivable of $265,000, and an average accounts payable balance of $79,000. Assuming that all of Ken-Z's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Your company had net sales of $100,000 over the past year. One quarter of the sales were credit sales. During that time, average receivables were $5,000. The accounts receivable balance at the end of the year was $5,000. What was the average collection period? What is the average age of receivables (same answer!)? (Assume a 360-day year) O 18 days O 27 days O 36 days O 72 days O 60 days
Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300. Assuming that all of LilyMac's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) What will be the firm's operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9% for the one year planned to take to collect the receivables. Using an annual interest rate of 9%, the present value of the receivables is $100,000 x 0.917 = $91,700. How much cash should the company expect to receive? $91,700 $91,000 $100,000 $108,300
A company has just sold a product with the following payment plan: $75, 000 today, $50, 000 at the end of year 1. and $25, 000 at the end of year two. If the payments are deposited into an account earning 4.5% per year, calculate the present value for the cash flow. Show steps using ONLY a financial calculator. The answer should be 145,740.

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