National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent of the customers pay on the tenth day and take discounts; the other 65% pay, on average, 45 days after their purchases. What is the average amount of receivables? Use 360 days

National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent of the customers pay on the tenth day and take discounts; the other 65% pay, on average, 45 days after their purchases. What is the average amount of receivables? Use 360 days

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are ₱2,539,130. Forty percent of the customers pay on the tenth day and take discounts; the other 50% percent pay on 30th day average, and ten percent, on the average pay 40 days after their purchases. Assume a 365-day year, what is the average amount of receivables? (round to nearest peso amount).
The cost of product X is 30 percent of its selling price, and the carrying cost is 8 percent of selling price. Accounts are paid on average 60 days after sale. Sales per month average P35,000. What is the investment in accounts receivable? CHOOSE THE ANSWERA. P600.00B. P6,600.00C. P19,000.00D. P16,600.00E. P26,600.00
Medwig Corporation has a DSO of 38 days. The company averages $3,250 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar. $
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,300. On October 4 they made a payment of $1,600. On October 13 the business borrowed $2,900, and on October 19 they borrowed $4,600. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.) $ 15658.71 X
Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of total trade credit (costly + free) the firm receives during the year, i.e., what are its average accounts payable? (Assume a 365-day year, and note that purchases are net of discounts.) a. $94,932 b. $109,895 c. $90,411 d. $104,662 e. $99,678
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?
ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365 days in a year. What is the receivables turnover? Round your answer to two decimal places. What is the average collection period (days sales outstanding)? Round your answer to the nearest whole number. days If the company offers credit terms of 50 days, are its receivables past due? Round your answer to the nearest whole number. Enter zero if the receivables are not past due. -Select-YesNoItem 3 , it is days overdue.
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,300. On October 4 they made a payment of $1,800. On October 13 the business borrowed $2,500, and on October 19 they borrowed $4,200. If the current prime rate is 8%, what is the new balance (in $)?
Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of goods sold of 240 million, and beginning inventory of 20 million, how long is the average colelction period? (assume 365 days in a year)
Cost of Trade Credit Grunewald Industries sells on terms of 2/10, net 50. Gross sales last year were $4,526,000 and accounts receivable averaged $434,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %
Net Credit Sales = 12,000. Accounts receivable turnover = 18.8 times. Cost of goods sold = 2,000. Days in Year = 365 days. How much is average collection period in days?
Matsumoto construction has a 100,000 line of credit at Bank of America. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was 22,500.00 On October 10, Matsumoto borrowed 15,000 to pay for a shipment of plants & on October 20 be borrowed another 32,500 for equipment repairs. On October 25 Matsumoto made a 25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Use the average daily method to determine the finance charge? What is Matsumotos new balance?

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