Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net 50. Based on experience, 80 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 1,340 forecasts every month at a price of $2,440 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.)

Q: Assume the credit terms offered to your firm by your suppliers are 2​/20​, net 40. Calculate the…

A: Discount rate (r) = 0.02 Discount days (D) = 20 Credit term (C) = 40   Cost of trade credit = ?

Q: A firm with sales of $22,000,000 has inventory of $800,000. The firm has cash sales (all sales are…

A: Answer    Inventory  storage period in days =            Inventory  / cost of goods sold  × 365…

Q: A large retailer obtains merchandise under the credit terms of 3/10, net 30, but routinely takes 60…

A: Every business needs goods and services to be purchased for its business. It can be on cash basis or…

Q: 10. SM Supermarket purchases P4,562,500 in goods over a 1-year period from its sole supplier. The…

A: Given information: Purchases = P4,562,500 Credit terms = 2/15, net 50 days Number of days in a year…

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

A: Interest rate= Prime rate +4% = 8% + 4%= 12% Interest is calculated for the number of days on…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net…

A: Credit Term of 3/20, Net 40 shows that buyers will get discount of 3% if payment is made in 20 days…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/30, net…

A: Average collection period: It is the time period that business takes to collect its payment from its…

Q: Gallant Sdn. Bhd., offers a credit period of 4 weeks.  The price and cost per unit of its product…

A: Since you have posted more than 3 sub-parts, we will provide the solution only to the first three…

Q: A large retailer obtains merchandise under the credit terms of 1/15, net 35, but routinely takes 70…

A: The term trade credit refers to the amount of time period that one seller provides to its customers…

Q: a. What effective annual interest rate does the firm earn when a customer does not take the…

A: Companies give discount to the customers for early payment and that is cost to the company and that…

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: 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: Cook's security system has a $37,500 line of credit, which charges an annual percentage variety of a…

A: The line of credit is a pre-approved limit offered by financial institutions or banks. You can draw…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net…

A: Given:

Q: ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the…

A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

Q: 10. SM Supermarket purchases P4,562,500 in goods over a 1-year period from its sole supplier. The…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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

A: the line of credit is a pre-approved limit offered by financial institutions, banks, etc, you can…

Q: ection period. BECK does not offer discounts for early payment; thus, customers take the full 30…

A: Basic concept of cash discount and receivable collection period

Q: On average, it will take you sell to the firm on credit. days to receive the payments, therefore,…

A: The operating cycle of a firm is time period from the purchase of raw materials till the receipt of…

Q: A large retailer obtains merchandise under the credit terms of 3/10, net 45, but routinely takes 60…

A: The objective of this question is to calculate the effective cost of trade credit for a retailer who…

Q: A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35…

A: Nominal Annual Cost = Discount percent(100-Discount percent) × 365 daysTotal Pay period - Discount…

Q: Assume the credit terms offered to your firm by your suppliers are 2/15, net 30 . Calculate the cost…

A: Discount % = 2% Credit Period = 30 daysDiscount Period = 15 daysNumber of day in a year = 365

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

A: Cook security systems has line of credit = $37500 Annual charge rate = 4% On October 1, Opening…

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

A: The objective of the question is to calculate the new balance of Cook Security Systems' line of…

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

A: Variables in the question:Prime rate=8%Annual % rate charged=Prime rate +4%=8%+4%=12%Balance on…

Q: A large retailer obtains merchandise under the credit terms of 3/20, net 45, but routinely takes 60…

A: The formula for calculating the effective cost of trade credit is = (1 + [Discount rate / (1 –…

Q: 3) A large retailer obtains merchandise under the credit terms of 3/10, net 30, but routinely takes…

A: Discount Rate = 3% Discount Period = 10 days Credit Period = 50 days

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

A: Given, Cock security system has $37500 line of credit  Annual percentage rate  = 4% october pmt -…

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

A: The current balance will be a function of opening balance, fresh borrowing, less repayment and the…

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

A: Interest rate applicable = Prime rate + premium Interest will be charge when the line of credit…

Q: The following forecasted information was taken from the books of Pakhama Enterprises.The following…

A: Budget: The budget is a financial plan and estimation of revenue and expenses and primary financial…

Q: AL Enterprises purchases P4,562,500 in goods per year from its sole supplier on terms of 2/15, net…

A: Discount rate = 0.02 (i.e. 2%) Allowed payment days = 50 Discount days = 15

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

A: Calculation of new balance are as follows

Q: Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 5/10,…

A: Trade credit is a type of credit that is extended by a business to its customers. It allows…

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

A: DatesNo. of…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net…

A: The credit policy is an important part of decision making related with the working capital in credit…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its c /25, net 60. Based on…

A: The average collection period in accounts receivable refers to the amount of time it takes for a…

Q: The following forecasted information was taken from the books of Pakhama Enterprises.The following…

A:

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.