Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. 1. What is the average amount of accounts receivable? (Use 360-day year)

Q: Net credit sales for Turner Company are $200,000 for the year and the average accounts receivable…

A: Average collection period = Accounts Receivable Turnover Ratio =

Q: Bluewater, Inc. has the following estimated quarterly sales for nex wear. The accounts receivable…

A: We need to use average receivables formula below to calculate expected account receivables at end of…

Q: YZ's receivables turnover is 24x. The accounts receivable at year-end are $410,000. The average…

A: Account receivables are payment due to the customers that are not received yet and will be received…

Q: dit terms of net 30. Its accounts are, on average, 7 days past due. Annual credit sales are $9.6…

A: The accounts receivable would be the proportionate annual credit sale amount pending on the balance…

Q: What is LoGo's payables deferral period (DPO)?

A: Payables deferral period (DPO) = Accounts payable/Credit purchases per day It is the number of days…

Q: A company reports the following: Sales $1,156, 320 Average accounts receivable (net) 87,600…

A: Lets understand the basics.Account receivable turnover ratio indicates number of times account…

Q: Receivables Investment Medwig Corporation has a DSO of 30 days. The company averages $7,750 in sales…

A: The objective of the question is to calculate the average accounts receivable for Medwig Corporation…

Q: As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January,…

A: Given that, Opening balance of accounts receivables = P500000 Sales for the month of Jan = P1200000…

Q: Grunewald Industries sells on terms of 1/10, net 40. Gross sales last year were $4,453,000 and…

A: According to the question given, we need to compute the nominal and effective costs of trade credit…

Q: Blossom Technology's operating cycle is 71 days. Its inventory was $111,000 at the end of last year,…

A: The operating cycle shows the time taken to convert its inventory into cash.So, operating cycle is…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Prime rate The current interest rate charged by the financial institution to its customers is known…

Q: Medwig Corporation has a DSO of 17 days. The company averages $7,750 in sales each day (all…

A: Accounts receivable are the people who owe the company. In simple words these are the people who…

Q: Using the following information and a 360-day year, what is your estimate of the firm's current…

A: To estimate the firm's current receivables period, we use the information provided to calculate the…

Q: PT AWOL has sales projections (in million rupiahs) for the following four quarters:   Q1 Q2 Q3 Q4…

A: A cash budget is prepared to present all the expected receipts, payments, and the cash balance at…

Q: Thompson Wood Products has credit sales of $2,628,000 and accounts receivable of $627,800. Compute…

A: Average collection period is period required to receive cash money from the customers from initial…

Q: establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at…

A: Quarterly deposit are of $11,000 Interest rate is 1.85% Compounded quarterly To Find: Value of…

Q: The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What is…

A: Receivables collection period is the average time required to receive payment from debtors. It is…

Q: What would happen to average receivables if Snider toughened its collection policy with the result…

A: 1) Days Sales Outstanding = % of pay  ×  Days =30%×10 + 70%× 30 =24 days

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Solution- Interest rate = 6% +4% = 10%   Rate of interest charged each day = 10% / 360 = 0.02778%…

Q: A firm has no cash sales (all sales are on credit and are collected 28 days after the sale). If the…

A: Average collection period is one of efficiency ratio which is used in business. This shows time…

Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…

A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…

Q: Westerly Industries has the following financial information. What is its cash conversion cycle?…

A: The cash conversion cycle refers to the number of days required to convert the cash that is spent on…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at…

A: The future value of an annuity is the total value of all periodic payments made into the annuity,…

Q: Please Give the answer of this question

A: Step 1: Introduction to the Account Receivable:Account receivable is a current asset created by a…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: DatesNo. of…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.