What is the days sales outstanding? b. What is the average amount of receivables? c. What would happen to average receivables if McDowell toughened its collection policy with the result that all non-discount customers paid on the 40th day?

Q: McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

A: Ratio analysis is one of useful technique used. Under this, various calculations are done on…

Q: What is the receivables turnover?

A: Turnover means the is the amount of sales by the business. It is sometimes called as income of the…

Q: New receivable balance c-1. If Maddox reduces its bank loans, which cost 12 gain or loss to the…

A: Accounts receivable is the total amount that is to be received from a customer in exchange for goods…

Q: dit terms of net 30. Its accounts are, on average, 7 days past due. Annual credit sales are $9.6…

A: The accounts receivable would be the proportionate annual credit sale amount pending on the balance…

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…

A: Trade credit refers to the practice of businesses extending credit terms to their customers,…

Q: M&N Ltd sells security doors. Majority of its sales are on credit except small amount of cash sales…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: during the year, Marion Produce's receivable collection period increased from 11 to 21 days. the…

A: Solution: Increase in collection period shows poor performance of company in relation to collection…

Q: a.  How long is cash typically tied up in inventories? (Show computations) b.   What would be the…

A: a)-The Inventory conversion period In the question it takes 80 days to collect the sales receivable…

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500.   a. How…

A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the…

A: ABC sells on credit terms of 2/10, n/30. Daily sales average = 200 units Sale price = P2500 each All…

Q: Your company had net sales of $100,000 over the past year. One quarter of the sales were credit…

A: Net Sales = 100,000 One quarter were credit sales Credit Sales = Net Sales / 4 = 100,000 / 4 =…

Q: c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use…

A: Given, Invoice amount=$ 1,500 1/15, net 60, basis which means if company y pays within 15 days then…

Q: Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements…

A: Accounting ratios are financial ratios through which a company can analyze its performance in terms…

Q: White Inc. wishes to speed up collection of its receivables.  White currently offers credit terms of…

A: The company collection policy to collect accounts receivable is very important. The ineffective…

Q: Han Corp's sales last year were $300,000, and its year-end receivables were $49,000. The firm sells…

A: The objective of the question is to find out the average number of days late that customers pay…

Q: The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What is…

A: Receivables collection period is the average time required to receive payment from debtors. It is…

Q: Gonzales Company currently uses maximum trade credit by not taking discounts on its purchases. The…

A: Net income:Net income is the total amount of money that a business or individual has left over…

Q: Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash…

A: Total sales = P1,200,000 Cash sales = 40%

Q: Harper Corp.'s sales last year were $395,000, and its year-end receivables were $42,500. Harper…

A: Days Sales Outstanding (DSO) is the measure the average number of days  a business to receive…

Q: Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and…

A: The account receivables are also known as the debtors. These are the values due to a firm on which…

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: TMRW Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010.…

A: 1.  TMRW Co.-   Average accounts receivable balance =  (Annual Credit Sales / 360 days) x Average…

Q: Bulldogs Inc. had credit sales last year amounted to P18,600,000. The firm also had an average…

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

Q: 4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are ₱2,539,130.  Forty…

A: Accounts receivables are those customer accounts to whom business has made credit sales on account…

Q: 7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…

A: In order to increase the sales revenue, the business entity sold the goods on a credit basis. Out of…

Q: Michaels Corp. has a current accounts receivable balance of $623,410. Credit sales for the year just…

A: Introduction: Accounts receivable turnover is the number of times a year that a business pays its…

Q: Problems: (A) Understanding Receivables: ABC sells on credit terms of 2/1o, n/30. Daily sales…

A: Solution: Accounts receivable is defined as those customers who have purchased the goods or taken…

Q: Axis Wells and Excavation (AWE) currently generates $198,000 in annual credit sales. AWE sells on…

A: Day sales outstanding is the number of days it takes for the company to recover its revenue from…

Q: The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past…

A: The amount of money that is owed to a company by its customers for products or services that have…

Q: ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365…

A: Question is based on the concept of Financial ratios

Q: Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500.   a. How…

A: Credit sales refer to the sale of goods where the buyer pays after receiving the goods. It is very…

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: Axis Wells and Excavation (AWE) currently generates $110,000 in annual credit sales. AWE sells on te…

A: Day sales outstanding is the number of days it takes for the company to recover its revenue from…

Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…

A: Days sales outstanding means the average number of days , a customer take , to make payment. This…

Q: Black Panther Inc. buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A: Net purchases = P450,000 Terms of credit = 2/15,net 60 days

Q: Dome Metals has credit sales of $450,000 yearly with credit terms of net 45 days, which is also the…

A: Credit management is considered to be important part. Discount are offered in order to receive…

Q: During its first year of operations, Fertig Company had credit sales of $3,000,000, of which…

A: Ratio analysis is a powerful tool used by businesses, investors, and financial analysts to evaluate…

Q: What is the company's average accounts receivable?

A: DSO indicates the average days takes to collect the payment from the accounts receivable.

Q: Mann, is the credit manager of MCC Inc. Mr. Mann would like to estimate the cost of credit sales.…

A: Assuming normal distribution gives you option that you can use the equations of normal distribution…