Homework Help is Here – Start Your Trial Now!
Business
Accounting
The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11

The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

39

The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11
Transcribed Image Text:The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS