Question

Essence of Skunk Fragrances, Ltd., sells 5,400 units of its
perfume collection each year at a price per unit of $384. All sales
are on credit with terms of 2/10, net 50. The discount is taken by
35 percent of the customers.

What is the amount of the company’s accounts receivable?
**(Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.)**

Average receivables ____ $ ?

Answer #1

Total Sales = units sold * price per unit

= 5400*$384 = $2,073,600

Average collection period = percentage of customers availing discount*the discount rate + percentage of customers not availing discount*total number of days within which the payment has to be made

= 35%*10 + 65%*50

=3.5+32.5 = 36 days

Average collection period = 36 days

Receivables turnover ratio = 365/average collection period

= 365/36

=10.14

Accounts receivables = Total sales/receivables turnover ratio

= $ 2,073,600/10.14 =$204519.50

4. Essence of Skunk Fragrances, Ltd., sells 6,200 units of its
perfume collection each year at a price per unit of $392. All sales
are on credit with terms of 1/10, net 50. The discount is taken by
35 percent of the customers. What is the amount of the company’s
accounts receivable? (Do not round intermediate calculations and
round your answer to the nearest whole number, e.g., 32.) Average
receivables

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...

Miyagi Data, Inc., sells earnings forecasts for Japanese
securities. Its credit terms are 1/30, net 40. Based on experience,
65 percent of all customers will take the discount.
a. What is the average collection period?
(Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.)
Average collection period
days
b. If the company sells 1,350 forecasts every
month at a price of $2,450 each, what is its average balance sheet
amount in accounts receivable?...

Miyagi Data, Inc., sells earnings forecasts for Japanese
securities. Its credit terms are 3/25, net 50. Based on experience,
80 percent of all customers will take the discount.
a. What is the average collection period?
(Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.)
Average collection period
days
b. If the company sells 1,340 forecasts every
month at a price of $2,440 each, what is its average balance sheet
amount in accounts receivable?...

PLEASE ANSWER BOTH PARTS!!!
Miyagi Data, Inc., sells earnings forecasts for Japanese
securities. Its credit terms are 3/10, net 50. Based on experience,
75 percent of all customers will take the discount.
a. What is the average collection period? (Do not round
intermediate calculations and round your answer to the nearest
whole number)
b. If the company sells 1,280 forecasts every month at a price
of $2,380 each, what is its average balance sheet amount in
accounts receivable?

McEwan Industries sells on terms of 3/10, net 35. Total sales
for the year are $1,461,000; 40% of the customers pay on the
10th day and take discounts, while the other 60% pay, on
average, 50 days after their purchases. Assume 365 days in year for
your calculations.
What is the days sales outstanding? Round your answer to two
decimal places.
days
What is the average amount of receivables? Round your answer to
the nearest cent. Do not round intermediate...

The MacFarlane Company has projected the following quarterly
sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $7,800 $9,600
$9,000 $7,500 a. Accounts receivable at the beginning of the year
are $3,600. 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 the nearest whole number, e.g., 32.) Q1 Q2 Q3 Q4
Beginning receivables $ $ $ $...

Kyoto Joe, Inc., sells earnings forecasts for Japanese
securities. Its credit terms are 1/15, net 30. Based on experience,
55 percent of all customers will take the discount.
a.
What is the average collection period for the company?
(Use 365 days a year. Do not round intermediate
calculations and round your answer to 2 deceimal places, e.g.,
32.16.)
b.
If the company sells 1,410 forecasts every month at a price of
$1,190 each, what is its average balance sheet...

McEwan Industries sells on terms of 3/10, net 40. Total sales
for the year are $1,870,500; 40% of the customers pay on the
10th day and take discounts, while the other 60% pay, on
average, 82 days after their purchases. Assume 365 days in year for
your calculations.
What is the days sales outstanding? Round your answer to two
decimal places.
What is the average amount of receivables? Round your answer to
the nearest cent. Do not round intermediate
calculations....

McEwan Industries sells on terms of 3/10, net 40. Total sales
for the year are $1,775,000; 40% of the customers pay on the
10th day and take discounts, while the other 60% pay, on
average, 52 days after their purchases. Assume 365 days in year for
your calculations.
What is the days sales outstanding? Round your answer to two
decimal places.
days
What is the average amount of receivables? Round your answer to
the nearest cent. Do not round intermediate...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 11 minutes ago

asked 16 minutes ago

asked 34 minutes ago

asked 41 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago