Hey tutor answer these general accounting question not use ai Miyagi Data, Inc., sells earnings forecasts for Japanesesecurities. Its credit terms are 1/30, net 50. Based onexperience, 75 percent of all customers will take thediscount.What is the average collection period? (Do not roundintermediate calculations and round your answer to thenearest whole number, e.g., 32.) Average collection perioddays

Step 1: Define Operating CycleThe operating cycle represents the sum of the average collection…

Answered: Miyagi Data, Inc., sells earnings…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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Chapter18: The Management Of Accounts Receivable And Inventories

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Miagi Data sells ernings forecast for japanese security. General accounting
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Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 50. Based on experience, 75 percent of all customers will take the discount. a. What is the average collection period? Average collection period _________________days b. If the company sells 1,380 forecasts every month at a price of $2,480 each, what is its average daily balance sheet amount in accounts receivable? Average accounts receivable ____________
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Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net 40. Based on experience, 65 percent of all customers will take the discount. a. What is the average collection period? (Do not round intermediate calculations and round your answer to 2 decimal places, 32.16.) b. If the company sells 1,250 forecasts every month at a price of $2,350 each, what is its average daily balance sheet amount in accounts receivable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Average collection period b. Average accounts receivable) $ 17 days 1,542,575.34
6. Answer questions A and B
Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 2/15, net 35. Based on experience, 75 percent of all customers will take the discount. What is the average collection period for the company? If the company sells 2,200 forecasts every month at a price of $900 each, what is its average balance sheet amount in accounts receivable?
Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/15, net 90. Based on experience, 80 percent of all customers will take the discount. What is the average collection period for the company? (Use 365 days a year. Do not round intermediate calculations.) If the company sells 1,240 forecasts every month at a price of $1,850 each, what is its average balance sheet amount in accounts receivable? (Use 365 days a year. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234, 567.89.) a. Average collection period? daysb. Average balance?
Assume the credit terms offered to your firm by your suppliers are 2/20, net 40. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 40. (Hint: Use a 365-day year.)
A large retailer obtains merchandise under the credit terms of 3/20, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. %
Hillz sells its goods with terms of 1/16 EOM, net 30. What is the implicit cost of the trade credit? (Do not round intermediate calculations. Use 365 days for calculation. Round answer to 2 decimal places, e.g. 12.25%.)

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