What is the days sales outstanding? What is the average amount of receivables? What is the percentage cost of trade credit to customers who take the discount?

Q: Net credit sales for Turner Company are $200,000 for the year and the average accounts receivable…

A: Average collection period = Accounts Receivable Turnover Ratio =

Q: Bluewater, Inc. has the following estimated quarterly sales for nex wear. The accounts receivable…

A: We need to use average receivables formula below to calculate expected account receivables at end of…

Q: YZ's receivables turnover is 24x. The accounts receivable at year-end are $410,000. The average…

A: Account receivables are payment due to the customers that are not received yet and will be received…

Q: Problem 9-10 ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume…

A: Therefore, the receivables turnover is 8.70.

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: A company has a collection period of 36 days and factors all receivables immediately at a discount…

A: Discount rate = 2.6%Number of days in a year = 365 daysCollection period = 36 days

Q: A1 Salon Supply Corporation had net credit sales during the year of $1,200,000 and cost of goods…

A: ACCOUNT RECEIVABLE TURNOVER RATIOAccount Receivable Turnover Ratio is the Ratio between Net Sales…

Q: Explain the meaning of a 20% annual percentage rate (APR) quotedby the credit c.ird company? And how…

A: Answer: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and…

Q: Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company…

A: Average account receivable = (Beginning account receivable + Ending account receivable)/2 20Y9 =…

Q: MULTIPLE OPTIONS The conditions of sale for Mulch Corporation are net/90. On average, their…

A: The average investment in receivables can be estimated with the help of days sales outstanding…

Q: Question Three  FLG Co has annual credit sales of $4·2 million and cost of sales of $1·89 million.…

A: In the given question :- 1) FLG Co has annual credit sales of $4·2 million and cost of sales of…

Q: The I. M. Broke Co. has the following collection pattern for its accounts receivable: 40 percent in…

A: Business organizations are required to sell their goods on a credit basis. Out of the credit sales…

Q: Bank A advertises a money market account that pays 3.5% compounded quarterly. Bank B advertises a…

A: Annual percentage of Yeild = [{(1+r)n} - 1] Where, r = Interest per period N = Number of periods…

Q: Receivables Investment Medwig Corporation has a DSO of 30 days. The company averages $7,750 in sales…

A: The objective of the question is to calculate the average accounts receivable for Medwig Corporation…

Q: McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty…

A: Discounted customers=15×30%=4.5 days

Q: Grunewald Industries sells on terms of 1/10, net 40. Gross sales last year were $4,453,000 and…

A: According to the question given, we need to compute the nominal and effective costs of trade credit…

Q: Medwig Corporation has a DSO of 17 days. The company averages $7,750 in sales each day (all…

A: Accounts receivable are the people who owe the company. In simple words these are the people who…

Q: Question 2 A company is considering factoring as a way of managing its trade receivables. It…

A: Calculation of interest charge payable for next year : Identify the amount of trade receivables…

Q: This year your company has $34 million of credit sales and average receivables of $7 million. Your…

A: APR signifies the complete expense of borrowing money for a year. It is expressed as a percentage of…

Q: Fitbands’ estimated sales are: Oct.   $131,989 Nov.   195,710 Dec.   249,288 Jan   124,318 Feb.…

A: Balances in accounts receivable = (Current month sales x 35%) + (Last month sales x 10%)

Q: Comparing Costs of Checking Accounts. What would be the net annual cost of the following checking…

A: Working note:

Q: What would happen to average receivables if Snider toughened its collection policy with the result…

A: 1) Days Sales Outstanding = % of pay  ×  Days =30%×10 + 70%× 30 =24 days

Q: Dyl Pickle Inc. had credit sales of $15,700,000 last year and its days sales outstanding was DSO =…

A: Days sales outstanding measures the total days the average accounts receivables were outstanding…

Q: Receivables Investment Medwig Corporation has a DSO of 37 days. The company averages $9,750 in…

A: Accounts Receivables are the money due towards customers but not yet paid on account of goods sold…

Q: 9. The sole proprietorship business of Individual M purchased a machinery amounting to $30,000. The…

A: Depreciation is the fall in the value of fixed assets due to normal wear and tear, accident, the…

Q: Please Give the answer of this question

A: Step 1: Introduction to the Account Receivable:Account receivable is a current asset created by a…

Q: Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,500,000. Thirty…

A: The term account receivable refers to the amount that the company is yet to receive from its…

Q: ccounts receivable turnover and days' sales in receivables or two recent years, Robinhood Company…

A: The account receivables turnover ratio is calculated as the net sales divided by average account…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.