Solve this accounting question not use ai Starset, Inc., has an average collection period of50 days. Its average daily investment inreceivables is $44,300. Assume 365 days peryear.A) What is the receivables turnover? Round youranswer to 4 decimal places.B) What are annual credit sales? Round youranswer to 2 decimal places.

Step 1: Define Receivable Turnover RatioThe receivable turnover ratio is used to assess how well a…

Answered: Starset, Inc., has an average…

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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Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? a.16.08% b.16.88% c.15.27% d.17.72% e.18.39%
A firm charges its credit customers 1.67% interest per month. What is the effective interest rate?
Suppose your credit card issuer states that it charges a 24.00% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? O a. 26.29% b. 31.12% O c. 29.51% d. 26.82% e. 21.19%
An FI has estimated the following annual costs for its demand deposits: management cost per account = $150, average account size = $1600, average number of cheques processed per account per month = 75, cost of clearing a cheque = $0.10, fees charged to customer per cheque = $0.05, and average fee charged per customer per month = $15. (a) What is the implicit interest cost of demand deposits for the FI? (b) If the FI has to keep an average of 8 per cent of demand deposits as required reserves with the RBA paying no interest, what is the implicit interest cost of demand deposits for the FI? (c) What should be the per-cheque fee charged to customers to reduce the implicit interest costs to 3 per cent? Ignore the reserve requirements.
An FI has estimated the following annual costs for its demand deposits: management cost per account = $150, average account size = $1400, average number of cheques processed per account per month = 65, cost of clearing a cheque = $0.10, fees charged to customer per cheque = $0.05, and average fee charged per customer per month = $10.(a) What is the implicit interest cost of demand deposits for the FI?(b) If the FI has to keep an average of 6 per cent of demand deposits as required reserves with the Central Bank paying no interest, what is the implicit interest cost of demand deposits for the FI?(c) What should be the per-cheque fee charged to customers to reduce the implicit interest costs to 2 per cent? Ignore the reserve requirements.
1. Last year your company had average accounts receivable of $2 million. Credit sales were $24 million. You factor receivables by discounting them 2%. What is the effective rate of interest?
Sweetens Cove, Incorporated, has weekly credit sales of $69400 and the average collection period is 23 days. What is the average accounts receivable figure?
A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all accounts. The annual interest rate, they claim, is 12(1.375%) = 16.5%. What is the effective rate of interest per year being charged by the company?
The annual interest rate on a credit card is 24.99%. If a payment of $100.00 is made each month, how long will it take to pay off an unpaid balance of $2,487.56?
Suppose a credit card was used to make a $7800 purchase at 16.8% interest with a monthly payment of $193.Complete the following. (a) Calculate the time it will take to pay off the debt making only the given payment each month. (b) Calculate the total interest paid. (c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
Suppose a credit card was used to make a $7800 purchase at16.8% interest with a monthly payment of $193. Complete the following. (a) Calculate the time it will take to pay off the debt making only the given payment each month. (b) Calculate the total interest paid. (c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
Receivables Investment Medwig Corporation has a DSO of 17 days. The company averages $7,750 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.

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Starset, Inc., has an average collection period of 50 days. Its average daily investment in receivables is $44,300. Assume 365 days per year. A) What is the receivables turnover? Round your answer to 4 decimal places. B) What are annual credit sales? Round your answer to 2 decimal places.