Can you please answer the accounting question? I will give you helpful thank you Malty Publications Inc. currently has dollar 660,000 inaccounts receivable and generated dollar 4, 910,000 in sales(all on credit) during the year that just ended. The firm's dayssales outstanding (DSO) is days? Use 365 days as the lengthof a year in all calculations. Malty Publications Inc.'s CFO isunhappy with its DSO and wants to improve collections nextyear. Sales are expected to grow by 12 percentage next year,and the CFO wants to lower the DSO to the industry averageof 30 days. How much accounts receivable is the firmexpected to carry?a. $587,586b. $429,390c. $542,387d. $451,989

Step 1: Define Day Sales OutstandingDay Sales outstanding shows the time taken by a company to…

Answered: Malty Publications Inc. currently has…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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Atlantic Northern Inc. currently has $715,000 in accounts receivable and generated $4,650,000 in sales (all on credit) during the year that just ended. The firm’s days sales outstanding (DSO) is days. Use 365 days as the length of a year in all calculations. Atlantic Northern Inc.’s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 13% next year, and the CFO wants to lower the DSO to the industry average of 30 days. How much accounts receivable is the firm expected to carry? $453,471 $431,877 $410,283 $388,689
Ingraham Inc. currently has $205,000 in accountsreceivable, and its days sales outstanding (DSO) is 71 days. It wants to reduce its DSOto 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company’s average sales will fall by 15%. What will be the level of accountsreceivable following the change? Assume a 365-day year.
Globex Corp. has forecasted sales of $30.0 million for next year and expects its cost of goods sold (COGS) to remain at 80% of sales. Currently, the firm holds $2.8 million in inventories, $2.3 million in accounts receivable, and $2.4 million in accounts payable. (Use 365 days are the length of a year in all calculations.) a. Approximately how long does it currently take Globex Corp. to convert raw materials to its finished products and then to sell them? b. On average, how long does it take from the time a sale is made until the time cash is collected from customers? c. Globex Corp. relies on customer credit when it buys raw materials from its suppliers. How long does it take after the firm purchases materials before it sends cash to its suppliers? d. What is the length of Globex Corp.'s cash conversion cycle (CCC)?
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A company is launching a new sales initiative and expects sales of $446,838 during the first year, and the gross profit margin to be 25%. To prepare for this, they plan to acquire 49 days worth of inventory. Their vendor will allow 48 days to pay its invoices. The company plans to sell only on account to its customers, so sales will be entirely credit based, and the average invoice is expected to take 44 days to collect. What amount of net working capital should be included in the initial investment? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 Type your answer...
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General Account
What will be the firm's operating cycle?
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Lalit Lumber Company has sales of $13 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $3.45 million. Assume 365 days in the year for your calculations. 1. What is Lalit's DSO? 2. What would DSO be if all customers paid on time?
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If a firm has sales of $22,242,000 a year, and the average collection period for the industry is 35 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar. $

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