Question

A firm has sales of $1.4 million, and 10 percent of the sales are for cash....

A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000.
  
What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Paden Corporation has annual sales of $92 million. The average collection period is 54 days....
The Paden Corporation has annual sales of $92 million. The average collection period is 54 days. What is the average investment in accounts receivable as shown on the balance sheet? (Use 365 days per year. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)      Average accounts receivable $    Essence of Skunk Fragrances, Ltd., sells 7,300 units of its perfume collection each...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity Cash $ 38,000 Accounts payable $ 262,000 Accounts receivable 292,000 Accrued taxes 148,000 Inventory 248,000 Bonds payable (long-term) 178,000 Plant and equipment 500,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 240,000 Total assets $ 1,078,000 Total liabilities and equity $ 1,078,000 Compute the following ratios: (Use a...
The Newkirk Corporation has annual credit sales of $29 million. The average collection period is 34...
The Newkirk Corporation has annual credit sales of $29 million. The average collection period is 34 days. (Enter your answer as directed, but do not round intermediate calculations.) Required: What is the average investment in accounts receivable as shown on the balance sheet? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)   Average receivables $   
The Gruber Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2...
The Gruber Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2   Q3   Q4   Sales $ 770 $ 800 $ 880 $ 960 a. Accounts receivable at the beginning of the year are $360. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,700,000, with...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,700,000, with 75 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity Cash $ 70,000 Accounts payable $ 296,000 Accounts receivable 358,000 Accrued taxes 164,000 Inventory 245,000 Bonds payable (long-term) 139,000 Plant and equipment 423,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 247,000 Total assets $ 1,096,000 Total liabilities and equity $ 1,096,000 Compute the following ratios: (Use a...
Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio...
Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio 0.4 Inventory turnover 4.0 Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) Long-term debt ratio 0.1...
The Brenmar Sales Company had a gross profit margin​ (gross profits÷​sales) of 34 percent and sales...
The Brenmar Sales Company had a gross profit margin​ (gross profits÷​sales) of 34 percent and sales of $8.7 million last year. 70 percent of the​ firm's sales are on​ credit, and the remainder are cash sales. ​ Brenmar's current assets equal $1.4 ​million, its current liabilities equal $295,900​, and it has $109,500 in cash plus marketable securities. a. If​ Brenmar's accounts receivable equal $562,300​, what is its average collection​ period? b. If Brenmar reduces its average collection period to 25...
ALei Industries has credit sales of $143 million a year. ? ALei's management reviewed its credit...
ALei Industries has credit sales of $143 million a year. ? ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 45 days. a.What is the maximum level of accounts receivable that ALei can carry and have a 45?-day average collection? period? b.If? ALei's current accounts receivable collection period is 55 ?days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 45...
ALei Industries has credit sales of $ 153 million a year. ​ ALei's management reviewed its...
ALei Industries has credit sales of $ 153 million a year. ​ ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 45 days. a.  What is the maximum level of accounts receivable that ALei can carry and have a 45​-day average collection​ period? b.  If​ ALei's current accounts receivable collection period is 55 ​days, how much would it have to reduce its level of accounts receivable in order to achieve its...
16 Neveready Flashlights Inc. needs $345,000 to take a cash discount of 3/13, net 73. A...
16 Neveready Flashlights Inc. needs $345,000 to take a cash discount of 3/13, net 73. A banker will loan the money for 60 days at an interest cost of $12,300.   a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)    b. How much would it cost (in percentage terms) if the firm did not take the cash discount but...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT