Question 21 A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average collection period? Assume 365 days in a year Question 22 A firm has sales of R40 million, total assets of R50 million and total debt of R9 million. The net profit margin is 8%. a) What is the net profit? b) ROE

Question 21 A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average collection period? Assume 365 days in a year Question 22 A firm has sales of R40 million, total assets of R50 million and total debt of R9 million. The net profit margin is 8%. a) What is the net profit? b) ROE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PROBLEMS: 1 Bacolod Supermart made cash sales of P3,000,000 and credit sales of P8,000,000. Out of the sales made on credit, P7,000,000 had been collected by year-end. It paid out P6,000,000 for expenses and owed P2,000,000 at year-end. What is the accrual profit?
What caused a decrease in the current ratio?
Mm.53.
1 Please show BA calculator solution
F1
(16-15) Cash Discounts Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes discounts. a. What is the average amount of accounts payable net of discounts? (Assume the $3.65 million of purchases is net of discounts-that is, gross purchases are $3,724,489.80, discounts are $74,489.80, and net purchases are $3.65 million.) b. Is there a cost of the trade credit the firm uses? c. If the firm did not take discounts but did pay on the due date, what would be its average payables and the cost of this nonfree trade credit? d. What would be the firm's cost of not taking discounts if it could stretch its payments to 40 days?
ABC's sales for this year were $32,250,000 and the Accounts Receivable Turnover Ratio was 15.5. Next year, they anticipate sales of $30,000,000 and an Accounts Receivable Turnover Ratio of 19.2. If that happens, by how much will Accounts Receivable change?
QUESTION 3 A firm has sales of $4.5 million, and 12 percent of the sales are for cash. The year-end accounts receivable balance is $575,000. What is the average collection period? (Use a 360-day year). O 26.84 days O45.69 days 37.95 days 52.27 days 17.29 days
Last year Dania Corporation's sales were $525 million. If sales grow at 11.3% per year, how large (in millions) will they be 6 years later? O a. $880.95 million Ob. $998.00 million Oc. $584.33 million Od. $896.68 million Oe. $1,078.00 million
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Use the table for the question(s) below. FCF Forecast (S million) Year Sales 1 270 12.5% 27.00 (5.40) Less Increase in NWC (12% of Change in Sales) 3.60 Free Cash Flow 18.00 Growth versus Prior Year EBIT (10% of Sales) Less: Income Tax (20%) 0 240 OA. $46.15 B. $25.64 OC. $12.82 D. $23.07 2 290 7.4% 29.00 5.80 2.40 20.80 • 3 310 6.9% 31.00 6.20 2.40 22.40 4 325.5 5.0% 32.55 6.51 1.86 2418 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 7% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. If Banco industries has a weighted average cost of capital of 11%, $30 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 1?