User Account

All Pages

What is the firm average collection period

Assignment Help Operation Management
Reference no: EM131173330

Milwaukee Surgical Supplies,Inc., sells on terms of 3/10, net 30. Gross sales for the year are $1,200,000, and the collections department estimates that 30 percent of the customers pay on the tenth day and take discounts, 40 percent pay on the thirtieth day, and the remaining 30 percent pay, on average, 40 days after the purchase. (Assume 360 days per year)

a. What is the firm's average collection period?

b. What is the firm's current receivables balance?

c. What would be the firm's new receivables balance if Milwaukee Surgical toughened up on its collection policy, with the result that all nondiscount customers paid on the 30th day?

d. Suppose that the firm's cost of carrying receivables was 8 percent annually. How much would the toughened credit policy save the firm in annual receivables carrying expense? (Assume that the entire amount of receivables had to be financed.)

Reference no: EM131173330

Questions Cloud

Calculate the continuous distribution function : The probability density function (PDF) of a continuous random variable is given in Fig.- Calculate the Continuous Distribution Function (CDF) and do its plot.
Develop an instructional project that includes mpg required : Develop an instructional project that includes measurable postsecondary goals (MPG) required for all students, all disabilities in the categories of Training/Education.
Reaction which has an induced kinetic differential equation : Construct a reaction which has an induced kinetic differential equation that has solutions defined on the whole positive half-line of real numbers and which still does not belong to any of the reaction classes above.
What is a share of the stock worth : Temp Corp. just paid a $2.25 dividend. Because of a new invention, the dividend is expected to rise at a 35% rate for two years, then a 15% rate for two more years. Then, competition will flood the market and the firm will pay a $32 liquidating di..
What is the firm average collection period : a. What is the firm's average collection period? b. What is the firm's current receivables balance? c. What would be the firm's new receivables balance if Milwaukee Surgical toughened up on its collection policy, with the result that all nondiscou..
Determine the major political and social factors : Analyze at least two (2) new provisions to the Affordable Care Act. Interpret the implications of these new provisions for access to care for families. Provide specific examples of such implications to support your rationale.
Identify a specific law that each healthcare facility needs : Identify a specific Law/Regulation/Standard that each healthcare facility needs to be aware of and comply with during regular business in the USA.
Show that a generalised compartment system is conservative : A compartmental system is a special case of the first order reaction; it is a reaction in which the length of all the complexes is not more than one. A compartmental system is closed if it does not contain the zero complex. Show that a compartment..
Determine the new equilibrium price and quantity. : Suppose the demand and supply are given by Qdx = 14 - 1/2 Px and Qyx = 1/4 Px - 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium pri..

Reviews

Write a Review

Operation Management Questions & Answers

  Use to estimate the demand model developed

From the scenario for Katrina’s Candies, examine the procedure Herb will use to estimate the demand model developed in the scenario for Week 1. Analyze the elasticity of demand for products within the selected industry relevant to Katrina’s Candies. ..

  Conflict issues between team members

Your company has been having conflict issues between team members from the United States and Japan due to unintentionally offensive emails.

  Does the oregon court have personal jurisdiction over dealer

Samantha, an Oregon resident, buys a Porsche from Southside Porsche of Los Angeles, in Los Angeles, California while she is on vacation in Los Angeles. Assuming that the cause of action is valid, does the Oregon court have personal jurisdiction over ..

  Guarantee success in marketing-advertising

Although no single approach can guarantee success in marketing and advertising, STP marketing should always be considered when consumers in a category have heterogeneous wants and needs. Think about a product that you have used in the past week and e..

  Change requests or the need to maintain reserve

Project costs can be affected by many factors such as inflation, change requests or the need to maintain a reserve. Explain any one factor and how you will act on it. Narrate an example of an ethical dilemma that project managers may have to contend ..

  Create and sell low-risk assets

The process where financial intermediaries create and sell low-risk assets and use the proceeds to purchase riskier assets is knownas

  Analyze and find the trends on each

With these two control charts, analyze and find the trends on each. Determine the success or failure. The scenario is that the check-in time is 4 minutes or less and the check-out time is no more than 2 minutes at a hotel. In the previous setting, th..

  Determine the real motivations behind the use of service

You are aware of the steps in the consumer purchase behavior model and are determined to analyze them in detail. Using Maslow's Hierarchy of Needs model as a backdrop, determine the real motivations behind the use of your service.

  Estimate the optimal order quantity

Flextora Inc sells a product called SKU561. This is a seasonal product and only sold in the spring. Seasonal demand is normally distributed with mean 10,000 and standard deviation 1,000.

  Some favoritism in giving out assignments

Upon meeting her new supervisor, Shelly, an assistant department manager for several years, mentions that in the past there has been some favoritism in giving out assignments. The next day Shelly’s supervisor takes her into his office and says, “Shel..

  Addressed by a functional manager

Which of the following is a question likely to be addressed by a functional manager? Is there enough capacity to supply demand in this market? What will the other companies do with their product lines next year? In two years?

  Are these situations legal or illegal in the workplace

Are these situations legal or illegal in the workplace? An employer learns that one of his employees is in a same-sex relationship. This makes the employer uncomfortable, resulting in the employee being terminated. Are the following situations legal ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd