What is the average investment in accounts receivable

Assignment Help Financial Management

Reference no: EM131016053

The Red Zeppelin Corporation has annual sales of $86 million. The average collection period is 25 days. What is the average investment in accounts receivable as shown on the balance sheet? Assume 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 nearest whole dollar amount.)

Reference no: EM131016053

Questions Cloud

Minus cost of goods sold and operating expenses : On the income statement, sales revenue, minus cost of goods sold and operating expenses, equals which of the following?

Determined that a rate of return : Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,700, $9,700, and $15,900 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determ..

How much money will you have on the date of your retirement : Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $63,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next yea..

Conflicts between managers and committee members : What are potential agency conflicts between managers and committee members /shareholders? What are some possibilities of conflicts if management makes decisions without consulting the board of commitee and shareholders first? such as an LBO?

What is the average investment in accounts receivable : The Red Zeppelin Corporation has annual sales of $86 million. The average collection period is 25 days. What is the average investment in accounts receivable as shown on the balance sheet? Assume 365 days per year. (Enter your answer in dollars, not ..

The expected value of return for plan : Under good conditions (25% probability), Financing Plan A will produce $30,000 higher return than Plan B. Under normal conditions (65% probability), Plan A will produce $10,000 higher return than Plan B, and under tight money conditions (10% probabil..

Calculate your monthly payments for next seven years : Five years ago you signed a loan contract with a repayment of 12 years at a fixed rate of 7.5%. You have made all your monthly payments so far and at present have a balance of $125000. The current market rate is 6.25% but you are obliged to continue ..

Using the expectations theory and inflation : Suppose 2-year Treasury bonds yield 5.9%, while 1-year bonds yield 6.8%. r* is 1.75%, and the maturity risk premium is zero. Using the expectations theory, what is the yield on a 1-year bond, one year from now? Calculate the yield using a geometric a..

Assume that there is no maturity risk premium : A 5-year Treasury bond has a 3.05% yield. A 10-year Treasury bond yields 6.05%, and a 10-year corporate bond yields 9.6%. The market expects that inflation will average 3.3% over the next 10 years (IP10 = 3.3%). Assume that there is no maturity risk ..

User Account

All Pages